Jose Antonio Reyes's agent has confirmed Atletico Madrid are interested in signing the Arsenal forward.
Reports emanating from Spain on Wednesday claimed Atletico were ready to rival city rivals Real Madrid for Reyes's signature.
Reyes has not hidden his desire to return to Spain because he has failed to settle in England.
Real Madrid have confirmed their interest in the former Sevilla man, but have been unable to agree a deal with Arsenal.
That has allowed Atletico to enter the race for Reyes' signature and reports suggest Atletico officials have travelled to London to hold talks with Arsenal.
Atletico are keen to bring in Reyes, as they look to bolster their squad before the transfer window slams shut next week.
Arsenal are reported to have indicated they would be willing to do a deal with Atletico, as long as they could have first option on star striker Fernando Torres.
However, Atletico have snubbed the option as they are currently working on offering Torres a new deal at El Vicente Calderon.
Reyes's agent, Jesus Rodriguez de Moya, has confirmed Atletico are keen on Reyes, but that he has not held any talks with the Spanish club as yet.
"They (Atletico) have not spoken to me directly," said Rodriguez de Moya.
Arsenal could now be prepared to start a bidding war between Atletico and Real for Reyes, as they look to get the best price for the Spanish international.