Cavani is being heavily linked with a move away from the club following a disappointing start to the season that has seen him fall out of favour with boss Thomas Tuchel.
The Uruguayan has not been helped by injuries but the arrival of Mauro Icardi from Inter Milan on a season-long loan has not helped either, and a move away could be the best thing for all parties.
Cavani has played in just nine matches, scoring two goals, and a fresh start in Spain could be just what is needed.
Atletico have struggled for goals this season and see Cavani as the player that could come in and be the answer to their problems.
The capital outfit are winless in the last three games, and have not scored more than one goal in the last seven outings.
It has resulted in them slipping to sixth in the La Liga standings and boss Diego Simeone is keen to address the situation in the January window.
The La Liga side only have Alvaro Morata as a fit and functional striker at the moment and Cavani would be able to slot straight into the side.
The PSG star is said to be keen on making the move, while PSG will reportedly not stand in his way if the price and the deal is right.
There is sure to be interest from elsewhere but, for now, Atleti look to be in the box seat.