Chelsea look to trump Arsenal to the signing of former Liverpool target Diego Costa

Blues manager Jose Mourinho is eager to add to his attack in the upcoming window with striking trio Fernando Torres, Samuel Eto'o and Demba Ba failing to hit the back of the net on a regular basis.

Mourinho is still interested in bringing Monaco striker Radamel Falcao to Stamford Bridge, but a transfer for the Colombian star is becoming increasingly unlikely due to the French club's huge £80m asking price.

Costa, who was subject of a £20m bid from Liverpool during the summer, is considered by Chelsea as a less expensive alternative to Falcao and has impressed Mourinho with a number of commanding performances in the Champions League for Atletico.

Despite signing a new contract in the summer which keeps him at the club until 2018, Costa's form has seen a number of top clubs tracking his progress.

Arsenal have been running the rule over Costa, 25, in recent weeks and reports suggest the club sent chief scout Steve Rowley to Spain to watch the Brazilian ace in action during Atletico's Copa Del Rey match against Sant Andreu.

But according to reports in Italy, Chelsea will attempt to bring Costa to England in the new year and are hopeful of securing a deal by offering Romelu Lukaku in exchange.

With Lukaku currently on-loan at Everton for the rest of the season, Chelsea are hopeful Atletico will accept a deal that will see the Belgian star move to Spain next summer.

Costa has been a major factor in Atletico's sensational season with the club currently level on points with Barcelona at the top of La Liga.

Atletico manager Diego Simeone will be desperate to keep his star striker, who has scored 21 goals this term, at the club as he looks to break Barcelona and Real Madrid's dominance of the Spanish top flight.

However Simeone could be powerless to stop Costa leaving the Vicente Calderon as it is believed the forward has a £32m buy-out clause inserted into his current deal.