The Brazilian midfielder has stated that he has heard nothing from his former club regarding a move back to Spain and says that he is fully focused on playing for his current team
The 27-year-old's career at the Wolves seemed all but over after he had a huge falling out with then-coach Felix Magath, and was sent on loan to Los Colchoneros last season.
He was widely expected to jump ship in the summer after the trainer made clear that Diego is not part of his plans, but a move never materialised.
Following Magath's exit from the club, however, the Brazilian has integrated back into the team and stated that he is completely focused on Wolfsburg.
"We hear a lot about me in Spain, but I can confirm I have not had any contact with Atletico," Diego told Kicker.
"I am at Wolfsburg and very grateful for my situation. I just hope I have a good season."
The attacking midfielder made it clear that he is prepared to fight to keep his club away from relegation, but also has hopes that his side will eventually climb up the league into one of the top positions.
"We are prepared to fight to avoid relegation," he added.
"I hope we can get into the top four, but we know our situation is complicated. We have to go step by step."