The Spanish international has spent the last two seasons in Turin on loan at Juventus, but the striker is expected to return to the Wanda Metropolitano this summer.
Juventus have a purchase option for the forward that is believed to be €35m (£29.35m), but reports suggest that the Old Lady will not take up that option.
There have been reported discussions between the Italian giants and Atletico about the prospect of lowering the value, however, it is a concession that the Spanish side are not keen to make.
With a return to Turin seemingly off the table, according to Tuttosport, Arsenal are showing an interest in the 29-year-old, who has previous Premier League experience after playing for Chelsea between 2017 and 2020.
Morata scored nine goals in 35 league appearances this season, helping Juventus secure a top four place in Serie A. body check tags ::