The Brazilian midfielder understands there has been interest from the club where he spent last season on loan
The Brazilian spent the whole of last season on loan with los Rojiblancos before returning to the Bundesliga during the summer.
The midfielder's future has since been the subject of persistent speculation and the player himself recently admitted to being flattered by alleged interest from the Vicente Calderon club.
And in an interview with Sport Bild, Diego has now revealed his understanding that there has been "contact with Atletico" regarding a possible return to Spain.
The 28-year-old is believed to be desperate to play Champions League football and with Wolfsburg sat in 12th position on the back of an underwhelming campaign, all hope of playing in Europe next season has been extinguished.
Diego has made 26 Bundesliga appearances this season, scoring seven times and creating five assists for his team-mates.