Lula already faced several other charges related to a sweeping kickback probe at state-run oil company Petrobras, and Odebrecht is serving a 19-year sentence after his conviction on other corruption allegations in the investigation.

The new charges come amid expectations that Odebrecht - Latin America's largest construction conglomerate - is on the cusp of signing a leniency deal with prosecutors that would see its former chief executive and dozens of other executives turn state's witness.

Prosecutors