Atletico Madrid have announced they have agreed to terminate Diego Costa's contract due to personal reasons.

Former Chelsea striker Costa, 32, had another six months left to run on his deal after returning to the club during the 2017-18 season.

Atletico said in a statement on their official website: "Atletico de Madrid and Diego Costa have reached an agreement for the termination of the striker's contract, which was to end on June 30, 2021.

"The striker asked to leave the club for personal reasons a few days ago and on Tuesday signed the termination of his contract.

"The club thanks Diego Costa for his dedication during these years and wishes him well in the next stage of his professional career."

Prior to Tuesday's announcement, it had been reported in Spain that Arsenal are interested in signing Costa in the January transfer window in a bid to address the Gunners' lack of potency up front.

Costa scored 19 goals in 81 appearances in all competitions for Atletico after moving back to the club from Chelsea.