Following his return to the club in 2018 from the Blues, the Spanish international has suffered a host of injury problems.
And with him being one of the top earners at Atletico, Diego Simeone’s team are happy to cut their losses and
The Gunners want to bolster their attacking options following their miserable start to the campaign.
And Arteta is eyeing the possibility of re-uniting Costa with his ex-Chelsea team-mate Willian at the Emirates.
The pair won two Premier League title medals playing alongside each other at Stamford Bridge.
Costa has already been given permission to miss training by Atletico so he can focus on finding a new club