The Greek club confirmed over the weekend that they had opened up discussions with Rovers over a move for the 23-year-old.
Lautaro Formica, who himself plays in Greece for Asteras Tripolis, has confirmed that his younger brother has told him of his wish to leave Ewood Park.
"Of course I spoke with my brother about this," he told Sport24. "I said to him a lot of things about Greece and what Olympiakos means for the Greek football.
"The problem is that he has some issues with Blackburn that he must resolve.
"He told me that he wants to come to play here. It doesn't depend on him. It depends on the two clubs, Blackburn and Olympiakos. We will see what is going to happen."
Formica joined Rovers in August 2011 from Newell's Old Boys.