Ozil is showing no signs of penning a new deal at the Emirates Stadium and will either leave on a free transfer in the summer or for a cut-price fee in the January transfer window.
Manchester United have been heavily linked but reports now claim that Reds boss Jose Mourinho has cooled his interest as the German has failed to shine this season.
However, that has not deterred Atletico boss Diego Simeone, who could offer Ozil the chance to return to Madrid following a successful spell with rivals Real.
Atleti are ready to offer Ozil £200,000 to lure him away, and the German international is sure to be tempted by a return to La Liga if a deal is pursued.
Arsenal are thought to be lining up Lyon’s Nabil Fekir as a replacement after giving up hope of keeping Ozil at the club.