The former West Germany international had a falling out with the Brazilian last season but he has now suggested that he will be welcomed back with open arms
The attacking midfielder is currently on loan at Atletico Madrid and has explained that while he is open to returning to Germany, he would rather extend his stay at the Vicente Calderon.
However, when asked about Diego's stellar showing in the Rojiblancos' 3-0 victory over Athletic Bilbao in the Europa League final on Wednesday night, Magath suggested that the Brazilian will not be allowed to remain in Spain.
"We have seen how valuable he can be as a player when he brings all of his skills to the team," the 58-year-old coach told Deutscher Presse-Agentur. "So, our fans can look forward to that [next season] ..."
Diego joined Wolfsburg from Juventus in 2010 for a reported fee of €15.5 million but he was told by Magath last summer that he had no future at the club after a bust-up between the pair.