Former Atletico Madrid and Chelsea striker Diego Costa is in talks to sign for Palmeiras.

Costa, 32, is reportedly on the verge of signing a two-year deal with the Sao Paulo-based giants, who he has supported since he was a child.

Palmeiras are willing to pay the ex-Chelsea forward around £2.6million a year after tax, says Sky Sports.

Costa is currently in Brazil as a free agent after agreeing to terminate his contract with Atletico Madrid in December, six months early, due to personal reasons.

The striker has been plagued by injury problems this season, making just seven LaLiga appearances and scoring two goals.

He had also fallen down the pecking order at Atletico after they signed Luis Suarez in the summer, who has been in sensational form.