Atletico and Real battle it out for Reyes's signature

Atletico Madrid look set to beat city rivals Real to the signature of Arsenal winger Jose Antonio Reyes, Spanish media have reported.

The Spain international spent last season on loan with Real and helped them win the Primera Liga title, scoring twice in the 3-1 triumph over Real Mallorca in the final day showdown.

But reports in the media say Atletico reached an agreement with Reyes for a four-year contract and a fee of around nine million euros, topping a bid from Real of six million.

Another suitor, France's Lyon, appear to be third in line to secure the player. Reyes has made it clear he does not want to return to England and is keen to stay in Spain.

"I am delighted to be staying in Madrid. It is certain I will be staying in the capital, although we'll have to wait a little to see where I will be playing," Reyes said.

"It has been difficult working by myself and not being able to share a pre-season with my colleagues. For this reason, I am pleased everything is about to be resolved."

Reyes had a similar pre-agreement with Atletico last year only to turn his back on them at the last moment to join their neighbours. Reyes had to pay Atletico compensation.

If the deal goes through it will take Atletico's close-season spending towards the 70 million euro mark.

Atletico to move

Atletico Madrid signed an agreement with the local council yesterday to move to the La Peineta stadium, the centre-piece of the city's bid for the 2016 Olympics.

Their current home, the Vicente Calderon, is to be pulled down and turned into a park after the move, scheduled for 2010, takes place.

The out-of-town La Peineta, which was a part of the unsuccessful 2012 Olympic bid, is being upgraded and expanded to a 73,000 seat arena.

"We are going to a fabulous location, with everything we could need," Atletico president Enrique Cerezo told a news conference.