The Ghanaian midfielder, whose current deal comes to an end in June 2023, expressed his desire to stay at Los Rojiblancos.
"My agent is talking to [Atletico Madrid]," he told Onda Madrid.
"Sometimes we know that we don't always have what we want and I hope everything goes well.
"Like all the youth players developed here, all who played in the academy want to be here and they know what this club is about."
Partey added: "I think I am proud for having attracted the attention of other teams and this motivates me because it makes me feel that I am doing things well and improving things."