The Ghana midfielder joined the Premier League giants from the La Liga side last summer.
The Gunners triggered Partey's €50m release clause on the transfer deadline day.
However, the 27-year-old's journey at the club has been soiled with injuries since switching to the Emirates.
A report by Todofichajes says Diego Simeone is planning to launch a two-prong attack on Arsenal with Real Madrid loanee, Dani Caballos, the other player on his radar.
Partey has managed just 20 league appearances, starting 15 of them this season but without a goal, and sources have also claimed that the midfielder could be making a return to his former club, Atletico.
Partey was in action on Thursday as Arsenal failed to progress to the finals of the Europa League against Villarreal. Read Full Story