The striker has been angling for a return to the Spanish club after being told - allegedly via text message - that he was no longer part of Antonio Conte's plans at Chelsea.
Costa has refused to return to Chelsea this season after accusing the Blues of treating him like a 'criminal' and has been demanding they sell him to Atletico.
Now he looks to have got his wish with Atletico understood to have had an offer worth around €60million [£53million] accepted by the Premier League champions.
Diego Simeone's side are currently banned from signing players after breaching FIFA rules regarding international transfers of players aged under 16.
But the ban ends in January and Costa will officially make the move back to Atletico when the transfer window re-opens in the New Year, subject to a successful medical.
The 28-year-old is expected to begin training with the LaLiga team immeditely despite the deal not becoming official until 2018.
It will bring an end to a hugely successful Chelsea career for Costa, which saw him plunder 52 goals across three seasons and win two Premier League titles.
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