Wolfsburg general manger Klaus Allofs has insisted that Diego will not leave for Atletico Madrid this summer.
The Spanish club's president Enrique Cerezo said on Monday that negotiations between the two sides are going on over the transfer of the Brazilian playmaker.
"That's pure nonsense," ESPN quotes Allofs as saying. "I have also heard about Atletico saying 'Wow, that'd be great if he could return'. We have not been in contact. Diego is happy here. He will stay."
Diego played for Atletico on loan from Wolfsburg in the 2011-12 season and helped them win the Europa League.
