The Spain international has become one of the Gunners’ driving forces in midfield this term after earning a regular spot in the first team following injury to Jack Wilshere.
Cazorla will have one year left on his current deal at the Emirates Stadium when the season concludes in May, and Atletico are believed to be confident they can lure the 30-year-old to the Vicente Calderon.
The La Liga champions are keen on bolstering their midfield options after several injuries and suspensions have left them short in the middle of the park, a fact which was highlighted at the weekend after Atletico slumped to a 2-0 defeat to Celta Vigo after playing without Koke and Arda Turan.
Cazorla once again starred for the Gunners during their FA Cup fifth-round tie against Middlesbrough on Sunday, where Arsene Wenger’s men carved out a 2-0 victory to set up a quarter-final clash against Manchester United.