According to reports in England, the La Liga side have sent their scouts to watch the Nigerian a few times this season.
The scouts have been impressed by Ighalo’s performances and have recommended the 26-year-old to manager Diego Simeone.
Atletico will have to sell Jackson Martinez who joined from FC Porto this summer, before they bring in Ighalo.
AS Roma are also understood to be keen on the Super Eagles forward, who has netted 14 times so far in the Premier League.
Last week, Watford manager, Quique Sanchez Flores, waved aside speculation that Ighalo and his strike partner, Troy Deeney, would be sold.
“In meetings I have with the owner and the sporting director we never talk about the possibility of these players like Ighalo or Deeney leaving in the middle of the season,” Flores said.