The Argentine joined Atletico from Buenos Aires-based club San Lorenzo in 2014 but has never been able to establish himself as a regular in the Spanish side’s first team.
The 22-year-old made 31 La Liga appearances last term but only started 10 games for Diego Simeone’s side and it is thought he may be allowed to leave this summer.
Correa is highly-rated in Madrid and around Europe, with other Premier League clubs also said to be keen.
However, according to The Chronicle, Newcastle have shown the most interest and the board is in talks over the possible capture of the South American.
Rafa Benítez is hoping to put the finishing touches to his recruitment and has also been linked with Arsenal’s Lucas Perez but the signing of Correa would be a real coup given he is blessed with searing pace and the unpredictability that fans love.