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The Portugal international was signed in a £113 million (€126m) deal from Benfica in 2019 but struggled to make an impact during his time in La Liga.
Felix’s relationship with Atletico head coach Diego Simeone deteriorated at the start of last season and by the January transfer window, the Spanish club were open to letting the forward leave.
Chelsea spent £16m on their deal to bring Felix to Stamford Bridge on loan for the second half of last season but the 23-year-old only showed flashes of promise.
It’s understood that Chelsea will not be pursuing a permanent deal for Felix this summer having now signed Christopher Nkunku in a £52m deal from RB Leipzig and Nicolas Jackson from Villarreal for €37m (£31.8m).
But Felix’s future still appears to be away from Atletico as they have now taken away his No.7 shirt – the number he has worn since joining the club – and handed it to Antoine Griezmann.
Speaking before the Premier League season finished in May, Felix made it clear that he was keen to remain at Chelsea.
‘I don’t know yet my future,’ he said.
‘It’s a top club. Everyone in the club was very good to me, my team-mates [have been] unbelievable. And I really like to be here.’
When asked about Felix’s situation at Atletico last month, Simeone said in an interview with El Partidazo de COPE:
‘Joao is an Atletico Madrid player who, if he does not have a place at Chelsea, as Pochettino apparently said, he will have to come to Atletico de Madrid, he will have to work with us again, and obviously we will be willing to give him the best for that he can improve in what we believe is important.
‘He has enormous conditions, he heads well, he hits well with both feet… he will be what he wants to be. It is a reality that is shown in the game.’
Asked if Felix is aware of what’s required to succeed at Atletico, Simeone said: ‘It is one more question for him, possibly he is the one who has to respond to these things. We have been with this way of working for 11 years.
‘He had to go to Chelsea to be with Lampard, he has made the comment on the culture of work. It’s in him.
‘If he wants to, he will be a great footballer. There are guys who mature from football.’
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