The 32-year-old midfielder has a contract with PSG until the summer of 2016, but he is desperate to leave the Ligue 1 champions.
Head coach Laurent Blanc recently already revealed that Motta will not play for the Parisians again and the Iitaly international now appears to be on his way back to the Vicente Calderon.
"He is a player we are very much interested in," Rojiblancos supremo Cerezo was quoted as saying by El Mundo Deportivo.
"Negotiations are taking their time, but we are in talks.
"I don't know when the deal will be done, but talks are ongoing."
The Italy international started his professional career with Barcelona and previously wore the Atletico jersey in 2007-08, before leaving for Genoa. He also represented Inter before joining PSG in 2012.