The former Juventus playmaker has given a strong indication that he will return to his parent club despite previously saying he wanted to stay with the Europa League champions
The 27-year-old was shipped out to the Vicente Calderon on loan by the German outfit last summer after falling out with coach Felix Magath just one year after arriving at the Bundesliga club from Juventus.
He enjoyed an impressive 2011-12 campaign with Atletico, helping Diego Simeone's side win the Europa League and finish fifth in La Liga.
Despite recently admitting that he would like to join Atletico on a permanent basis, Diego looks resigned to return to the Volkswagen Arena.
"I think that I will be at Wolfsburg next season again," he told Wolfsburger Allgemeine Zeitung.
"I still have two years on my contract."
The Brazilian playmaker, who cost Wolfsburg €15.5 million, scored six goals in 42 competitive appearances for Los Colchoneros.