Costa, 28, wants to rejoin the Spanish club after being told he’s not in Antonio Conte's plans going forwards.

And Marca claim a deal totalling €65m (£57m) is now on the table.

It’s claimed Atletico will pay €55m (£48.5m) up front, with a further €10m (£8.5m) to follow in add-ons.

Marca say Diego Simeone is desperate to have the Spain international back on board, after he was sold to Chelsea for £32m in 2014.

His arrival back in Madrid would smash Atletico’s previous transfer record of €40m spent on Radamel Falcao in 2011.

Atletico feel their latest offer is fair considering Chelsea are desperate to offload Costa, who is in exile in Brazil after refusing to return to training.

Marca claim an exit for the striker is being held up over a loyalty payment squabble.

Costa would be due five per cent of any transfer fee which sees him leave Stamford Bridge.

Chelsea are desperate to avoid paying him that amount, which would be around €2.75m (£2.4m).

Costa can not play for Atletico until January, when their transfer ban is lifted.

However if a deal is struck between the two clubs, the Spain international could train with Atletico until he can be registered.