President Luiz Inacio Lula da Silva on Wednesday seemed to have lost his chance to win a second term in next year's general election as a three-month corruption scandal took its toll on the former metalworker's popularity.

Mr Lula da Silva would win less support in a first round election than Jose Serra, his 2002 rival and current mayor of Sao Paulo, according to Ibope polling firm. In a run-off between the two, the Social Democrat would beat Mr Lula da Silva with 44 per cent against 35 per cent.