Joao Felix has been offered to Newcastle after seeing his hopes of staying at Chelsea dashed.
In one of his first big calls as Chelsea's new head coach Mauricio Pochettino, opted against keeping Felix on following his loan spell at Stamford Bridge.
That has left the Portuguese forward, who had hoped to remain at Chelsea, in limbo.
He is out of favour at Atletico having left in January after falling out with manager Diego Simeone and the Spaniards are keen to find another taker.
With a shortage of interest in a permanent deal another loan move is a possibility for the 23 year-old.