Barcelona have reportedly decided against signing Atletico Madrid forward Joao Felix on a permanent deal.

The 24-year-old returned to Atletico last summer after spending the second half of the 2022-23 season on loan at Chelsea.

Felix was then sent out on loan to Barcelona, but not before extending his Atletico contract until June 2029 to reduce his annual salary so the Catalan giants could stay within La Liga's salary cap.

The forward has been unable to establish himself as a guaranteed starter amid competition from Raphinha, Lamine Yamal and Ferran Torres.

Felix has shown glimpses of promise to register 10 goals and six assists in 41 competitive matches, but he has ultimately been unable to find consistency during his loan spell with the Blaugrana.

Barcelona decide against permanent move

Incidentally, Felix's best performances of the season have taken place against his parent club after he scored the winner in December's 1-0 victory, before finding the net in March's 3-0 win.

Despite offering moments of quality, AS are reporting that Barcelona are reluctant to sign Felix on a permanent basis.

As a result, the Portugal international is set to return to Atletico when his loan spell concludes at the end of the season.

However, the report suggests that Barcelona have not ruled out the prospect of bringing Felix back on another loan deal.

What are Felix's alternative options?

If Barcelona decide against pursuing another loan agreement, Atletico could look to sell Felix in a bid to recoup some of the mammoth €126m (£112.9m) that they paid Benfica to sign him in 2019.

However, there is a suggestion that Atletico may struggle to find a club willing to meet their €60m (£51.4m) asking price.

Should they fail to sign a potential suitor, the Spanish giants could decide to keep Felix despite his fractious relationship with manager Diego Simeone.

During his time with Atletico, Felix has scored 34 goals and provided 18 assists in 131 appearances in all competitions.