Atletico Madrid are negotiating to improve Diego Costa's contract at the club after Liverpool waded in with an effort to snare the Brazilian.

Liverpool wanted to pay Costa's termination clause of €25m, however, with Atletico Madrid refusing to play ball, the Reds would have to pay a number of taxes on top of that, taking the total figure significantly higher.

Now Atletico Madrid coach Diego Simeone has, according to Spanish daily El Confidencial, taken a firm grip of the situation and emphasised to the club's management that Costa must be retained.

And so talks are taking place which would hand the striker an improved contract at the Vicente Calderon, especially important given Liverpool were offering to triple his wages.Costa's release clause will also increase with the penning of a new deal.

Simeone is keen for the Costa situation to be resolved quickly as he looks to add another goalkeeper and centre-back before the transfer window closes.

Atletico Madrid have a busy season on the horizon, with Champions League football added to La Liga and the defence of their Copa del Rey title.

Source: InsideFutbol