Cleary Gottlieb Steen & Hamilton is set to launch in Sao Paulo next year as the US leader moves to reinforce its highly-rated Latin American practice.

The firm is planning to relocate New York capital markets partner Juan Giraldez and Rome corporate finance partner Francisco Cestero to head up the Brazilian branch.

The office will comprise 10 US-qualified lawyers initially covering international finance, cross-border M&A, regulatory issues and litigation. The launch, which is subject to regulatory approval, is set for 2011.

Despite servicing Latin American clients largely from its New York base Cleary has built a reputation as one of the leading international advisers for the region's major corporates. Cleary underlined its credentials in September by advising Brazilian oil giant Petrobras on its record-breaking $75bn (£49bn) share sale.

Cleary managing partner Mark Walker said: "Brazil is a significant part of our Latin America practice, which began over 50 years ago and includes more than 100 lawyers.

"Juan's and Francisco's local knowledge and broad legal expertise, combined with the resources of our Latin America practice and the entire firm, will enhance our ability to provide the best possible legal services to our clients who have interests in Brazil and throughout the region."

Cleary also established an affiliate office in Buenos Aires in 2009 as a branch of its subsidiary firm CGSH International Legal Services.

The firm follows a number of international practices in launching in the fast-growing Brazilian market. Skadden Arps Slate Meagher & Flom, Allen & Overy, Gibson Dunn & Crutcher, Simpson Thacher & Barlett and Milbank Tweed Hadley & McCloy have all launched in Sao Paulo in the last three years.

The recent influx has sparked tension with local firms despite the ongoing ban on foreign law firms advising on Brazilian law. In September the Sao Paulo Bar issued an advisory notes which concluded that formal alliances between foreign and local firms breach bar rules.