As Atletico Madrid reportedly financially struggle to pick up Diego from Wolfsburg, Santos are seen as having entered the bidding process.
Atleti have been linked with making a return move for the Brazilian playmaker, who spent the 2011-12 campaign on loan at the Vicente Calderon.
However, an initial bid from Los Colchoneros of €5m has apparently been turned down, whilst the 28-year-old’s €5m wage is also seen as a barrier Atleti are struggling to overcome.
Widely expected to be leaving Wolfsburg this summer, the player has also now apparently attracted interest from another former club in Santos.
The Brazilians are seen as keen to appease fans with a popular signing or two this summer, in light of Neymar’s departure to Barcelona, and have identified fan favourites Robinho at Milan and Diego as prime targets.
The player is seen as after a good 2013-14 season so as to try and play his way into his national team’s plans ahead of their hosting of the 2014 World Cup.