The 31-year-old joined the club from Bournemouth in 2020 for a fee of around £20million.
While Wilson is a popular figure with supporters, he has just 18 months left on his deal in the north-east and his next contract is likely to be his last significant one in football.
Newcastle must sell before they can buy this month, with the Magpies running at their three-year limit to comply with Financial Fair Play.
That’s why the club are open to letting Kieran Trippier – one of the club’s biggest earners – join Bayern Munich.
And, while the club have rejected a loan approach from Atletico for Wilson, the Daily Mail say the Magpies will begrudgingly let him leave on a permanent basis.
Wilson, for his part, is keen on moving to the Spanish capital.
Atletico have financial problems of their own but Newcastle’s stance is likely to alert a number of other clubs.
Wilson has nine caps for England, and has scored 46 goals in 102 appearances for Newcastle.
For more stories like this, check our sport page.
Follow Metro Sport for the latest news on
Facebook, Twitter and Instagram.