The Uruguayan striker is currently without a club following his departure from the French capital, while a proposed move to Portuguese club Benfica has reportedly broken down over the player’s wage demands.
Diario Sport cite a report from Italian outlet Gazzetta dello Sport that Madrid are considering a move if they are able to sell both Luka Jovic and Mariano Diaz this summer – two strikers who have fallen to the periphery of Zinedine Zidane’s squad.
The 33-year-old was said to have agreed a personal agreement with Atleti in January while Marca and Cadena Ser both claimed at the time that the player was waiting on the deal to be completed as he is enthusiastic for moving to the Spanish capital, but the move did not come to fruition.
It was reported in January that PSG blocked a January move as they were demanding a €30m transfer fee, which Atleti were unwilling to play.
The Uruguayan scored exactly 200 goals in 300 appearances for PSG – the top scorer in the club’s history and is still widely regarded as one of the world’s deadliest strikers while he will not cost a transfer fee this summer.