Chelsea forward unlikely to be at Stamford Bridge next season
Diego Simeone's side signed the striker from Chelsea on an 18-month loan deal in January.
However, the Premier League club have threatened to cut short Morata's stay in the Spanish capital after being hit by a two-window transfer ban.
Chelsea have reportedly told Atletico that they will recall the former Real Madrid man unless the Rojiblancos pay £50m to make the move permanent.
However, Morata does not want to return to Stamford Bridge and Atletico are optimistic that he will be going nowhere this summer.
The La Liga outfit – set to lose Antoine Griezmann but sign Benfica's Joao Felix – are prepared to stump up the cash to prevent the 26-year-old from departing.