The Gunners have been willing to offload the midfielder this summer in order to bolster their transfer budget to fund moves for Thomas Partey and Houssem Aouar.
Torreira, who was signed from Sampdoria for £26 million in 2018, has attracted interest from several Serie A clubs this summer.
But according to ESPN Uruguay, a source close to Torreira has confirmed that the midfielder is on the verge of moving to Atletico.
The report claims that Torreira is keen on joining up with Diego Simeone at Atletico and the Uruguay international has rejected the chance to move to Fiorentina or Torino.
It’s reported that negotiations between Arsenal and Atletico are ‘advanced’ but not yet complete.
Torreira is yet to feature for Arsenal this season and Mikel Arteta has left the midfielder out of his side’s two Premier League games so far.
Atletico are hoping to agree a loan deal with Arsenal which will include an option to buy.
West Ham and Newcastle United are also interesting in signing Callum Chambers