SAO PAULO, June 24 - Brazilian Senator Jaques Wagner, a close ally of President Luiz Inacio Lula da Silva, stepped down as the government's leader in the Senate on Wednesday, becoming another high-profile casualty of a widening corruption investigation and posing new risks for Lula ahead of October's election.

Brazilian authorities announced last week that Wagner was under investigation as part of the probe into allegations that Daniel Vorcaro, owner of the now defunct Banco Master, used his money and influence to cultivate support among prominent politicians.

"I just had a great meeting with President Lula - a conversation among friends - and we decided, by mutual agreement, that I will step down from my leadership role in the Federal Senate," Wagner said in a post on X.

He added that his priority was to prove his innocence and dedicate himself to the Lula's presidential reelection and his own to the senate.

Wagner is the first member of Lula's inner circle to be ensnared by the Master investigation, which has touched figures across Brazil's political spectrum and is now creating a fresh political headache for the president as he seeks to defend his coalition during his bid for a fourth term in office. REUTERS

Brazil senator, Lula ally Wagner resigns from leadership amid corruption probe