The struggling Nerazzurri striker, who has managed just two Serie A goals this term, is apparently open to the idea of moving to Belo Horizonte this summer
The Uruguay international only arrived at San Siro last summer but he has struggled terribly for form and fitness this season and he has been heavily linked with the Galo in recent weeks.
Forlan attempted to quell the speculation earlier this week but Edgar Goulart, who is friend of both the player's father, Pablo, and Atletico president Alexandre Kalil, has claimed that while the proposed transfer is by no means a done deal, both parties are keen to make it happen.
"Kalil came to me and expressed an interest in taking the player to Belo Horizonte," the Uruguayan agent explained to Lancenet.
"I went to Diego with this interest. He wants to play in Brazil. Therefore, there is a good chance that the negotiations will take place.
"A transaction is difficult, though, because he was the best player at World Cup 2010. There is the will of both parties to make it happen but it will not be easy.
"Certainly, as a player you want to live and play in the city. It's a great place to live and I have said that to Diego myself."
Forlan has managed just two goals in 18 appearances in Serie A this season.