According to a report from Corriere dello Sport (via LazioNews24), Lazio are still searching for a new winger to fit in Maurizio Sarri's 4-3-3 system, with the Croatian being identified as a key target.
Brekalo is seen as an alternative to Borussia Dortmund's Julian Brandt, and since talks between Dortmund and Lazio have collapsed, the Croatian could become their main target.
Lazio want a new playmaker in their squad, especially with the likes of Joaquin Correa being set for a move away.
However, Fiorentina also have their eyes on the 23-year-old, with new Viola manager Vincenzo Italiano wanting to strengthen his forward line ahead of the coming season.
Brekalo is under contract with Wolfsburg until June 2023, with him having a reported market value of €12 million (transfermarkt.com).
He made 33 appearances in all competitions last season, getting seven goals and four assists, as Wolfsburg finished in an impressive fourth place, with Brekalo cementing himself as a key part of the squad across the season.
Brekalo is a very good dribbler and ball carrier, with him being known for his progressive passing that also led to him playing in three of Croatia's UEFA Euro 2020 games.