The 'Daily Mail' is reporting that the Rojiblancos will launch a bid to sign Costa and are prepared to pay £8 million more than they sold him for two years ago.
Chelsea boss Antonio Conte has denied that Costa will leave the club, but Atletico Madrid are still confident they can persuade the Blues into letting the Brazil-born Spaniard leave Stamford Bridge.
Atletico believe that they will be given the green light to sign Costa if Chelsea manage to bring another striker to the club.
It is no secret that Chelsea do intend to sign a new front man, with the Blues launching a bid for Everton's Romelu Lukaku.