Brazil's federal police have recommended charges against former president Luiz Inacio Lula da Silva and his wife in connection with the sprawling corruption probe at state-run oil giant Petrobras.

Friday's announcement comes on the second day of the impeachment trial against Silva's protege and successor Dilma Rousseff, who has been suspended from office since May.

Federal police accuse Silva of having an apartment built for him by a constructor in the beach city of Guaruja, in Sao Paulo state. He denies being the owner.

Federal prosecutors will now look into the case and decide whether Silva should stand trial.

He is also accused of obstructing Petrobras scandal investigations.