Paris Saint-Germain sporting director Leonardo says Edinson Cavani has handed in a transfer request.
Cavani's contract expires at the end of the season but the Uruguayan striker wants to leave during the January transfer window.
Atletico chief executive Miguel Angel Gil Marin met with PSG president Nasser Al Khelaifi in Paris on Tuesday to discuss a deal for Cavani, but Leonardo says their offer was rejected.
The Spanish club is the only one to formally express an interest in Cavani, who is due to resume training shortly after a spell on the sidelines with a hip injury.
Speaking after PSG's French Cup win at Lorient on Sunday, Leonardo said: "We've always said the same thing. We were hoping he would stay with the club, but today (Sunday) he asked to leave.
"We're studying the situation. We've had a proposal from Atletico Madrid, but that proposal was not commensurate with the player's value."
Cavani, who turns 33 in February, joined PSG from Napoli in 2013 for £55m and has scored 195 goals in 269 appearances.
How to follow the January transfer window with Sky Sports
Sky Sports will bring you the very latest news from the January transfer market with the return of three shows.
Start your day with Good Morning Transfers at 9am as our team of reporters bring you the latest news and insight. Transfer Talk then follows at midday delivering analysis of the biggest stories. Then join us at 7pm for the definitive round-up of the day's news with The Transfer Show.
Meanwhile, the Transfer Talk podcast will also be back at the turn of the year with more expert analysis from here and across the continent.
And as well as tuning into Sky Sports News, don't miss a thing with our dedicated Transfer Centre blog.
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