Rio De Janeiro, Oct 9 (IANS): Djair Cunha, father of Wolfsburg's Brazilian midfielder Diego, claims his son is in talks with Atletico Madrid.

Diego is out of contract with the German Bundesliga club at the end of the season but may sign a pre-contract with another club in January, Cunha said, reports Xinhua.

Atletico coach Diego Simeone has previously made no secret of his interest in the 28-year-old, who spent a successful season on loan at the club in 2011-12.

"The club that has been talking to me lately is Atletico Madrid," Cunha was quoted as saying in the Brazilian media. "On Wednesday the (Athletico) president will possibly be in Germany to talk to Wolfsburg."

"He can sign a pre-contract (with another club) from January onwards. Atletico Madrid would pay a small sum in compensation to bring the deal forward. That has to be discussed."

It is understood Brazilian clubs Botafogo and Flamengo are also interested in the former Brazil international.