The 32-year-old has again been a vital player for Diego Simeone's side this season, making 38 appearances in all competitions, contributing five assists in the process.
The Spaniard only has a contract at Wanda Metropolitano until the end of June, though, and there has been widespread speculation surrounding his future in recent months.
There had been suggestions that Koke would leave Atletico this summer in search of a fresh challenge, with a number of European clubs keeping a close eye on the situation.
However, according to journalist Matteo Moretto, a breakthrough in discussions was reached last week, and Koke is now expected to pen «a year-on-year deal» with the Red and Whites.
«The truth is the deal was stagnant. There was real distance between the two sides. Last week this changed, they re-opened talks and things went very positively,» Mortetto said in his Daily Briefing for Football Espana.
«Beforehand, talks were at a dead end, there was a gap between the two sides, it really looked far off. Of course, the willingness of Koke, who wants to remain in Madrid 100%, and the desire of Atletico to retain him, were key and the dynamics changed as a result.
»Right now, it looks as if an agreement is imminent. I'd say it could be closed in the international break coming after this weekend. It's obviously a really important deal for Atletico, their captain.
«Regarding the terms of the deal, it looks as if it will be a year-on-year deal, which depends on Koke hitting a predetermined number of games played.
»Los Rojiblancos have not changed their plans, clearly they are not going to look for a Koke replacement, but they are still looking
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