The Daily Mail says Osvaldo's agent is due to fly in for talks over a prospective move for Osvaldo to Atletico Madrid. Atletico are willing to offer no more than £15million and that has caused the deal to stall.
Espanyol value the 25-year-old at £18m and want the money to strengthen elsewhere. However, if a deal can't be struck Atletico will surprisingly move to the rather more expensive target of Falcao from Porto.
That will leave Espanyol still looking for takers on a player who scored 13 goals in 24 games last season and has earned plenty of admirers. Tottenham were not totally convinced after watching him but he remains an option.