The La Liga champions have been heavily linked with the silky midfielder for much of the transfer window, but their interest was thought to have cooled recently after the capture of Antoine Griezmann.
However speculation suggests that Atleti remain in the running, with an offer of around £16m being prepared.
With star names having left the Vicente Calderon, the Rojiblancos have money to spend and Cazorla is seen as an ideal addition.
Although there have been no public suggestions that the Gunners are ready to sell their man, rumours have indicated that a decent offer may tempt Arsene Wenger, with the playmaker almost 30.
The Spain international may also be deemed surplus to requirements, with the arrival of Alexis Sanchez adding yet more competition for an attacking midfield role at the Emirates Stadium.
Cazorla featured 46 times for Arsenal last season, netting seven goals.
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