The Argentine has managed Atletico since 2011, winning the La Liga title and reaching two Champions League finals.
However, Atletico find themselves in sixth place this season following a difficult start that has seen the La Liga side score just 16 goals in 14 outings.
According to Marca, the board at Atletico is starting to believe that a 'divorce is on the horizon', making Simeone potentially free for the Arsenal job.
However, there are concerns over the North London club's ability to attract elite managers due to budget restrictions, with Mikel Arteta and interim coach Freddie Ljungberg reportedly favourites for the permanent role. body check tags ::