Atletico Madrid, who have just been guaranteed €38m from Chelsea for their outgoing striker Diego Costa, will now join the fray with Arsenal and Liverpool in pursuit of Barcelona's Alexis Sanchez, according to reports in Spain.

Following several weeks of negotiations Chelsea confirmed on Tuesday they had agreed a deal to take Costa away from the Vicente Calderon after meeting his £30m ($51m) buyout clause.

And since, David Villa also recently confirmed his move to New New York City FC, the La Liga winners are now without a striker but crucially have the money to make a big investment in a top star.

Recent reports have claimed that both Manchester City star Alvaro Negredo and onloan Chelsea stiker Romelu Lukaku were among the club's choices to cover Costa's and Villa's vacancies but now Spanish newspaper AS claim they are ready to challenge Arsenal, Liverpool, Manchester United as well as Juventus to secure Sanchez's signature.

The Gunners were reportedly leading the race to secure the 25-year-old star but AS now understands that Atletico have an advantage over the Premier League giants in Diego Simeone's strong relationship with Sanchez, as his manager at River Plate.

Furthermore, Atletico will offer Sanchez the chance to remain in Spain, where he is happy, while also assuring him a leading role in the current La Liga winners.

Even though Sanchez scored 19 La Liga goals last season, the striker is not included in Barcelona's new boss Luis Enrique's plans and recently club sporting director, Andoni Zubizarreta, hinted they are open to a summer exit.

"There have been proposals from other clubs for Alexis but I do not know how things will end. We are looking for a good solution for everyone," he said.

The Catalans paid Udinese around £30m to secure Sanchez in the summer of 2011 and, after excelling at this World Cup, they hope to recoup at least the same amount this time around.

Liverpool are reportedly keen on including him as part of a Luis Suarez move to Barcelona but it is understood that Sanchez prefers a move to London than Merseyside.