The Brazil international was on loan in the Spanish capital last season and helped them to secure the Europa League, scoring the third goal as they turned over Athletic Bilbao in the final.
And Martin has revealed that the former Juventus schemer could return to the club as early as January.
"Diego’s Father has received a call from Atleti. Wolfsburg are having a dreadful season and have fired [coach Felix] Magath," he told Punta Pelota.
"At Christmas, or at the end of the season, Diego could sign for Atleti. His family like the idea."[Diego] Simeone is very insistent about it. The coach thinks that, with the Brazilian, he would have a squad to aspire to everything."
Atletico are currently unbeaten domestically this season and sit joint top with Barcelona on 25 points after nine games.