The Spanish international midfielder has been in terrific form this season and since December has netted an impressive six goals for the Gunners.
Interest in him is hardly unexpected, but the latest rumours from Cadena Cope regarding a potential agreement already being in place to join Atleti this summer is a worry for the North Londoners.
Shedding light on the situation, Balague confirmed Los Colchoneros’ interest and stated that Diego Simeone’s side are convinced they can tempt the former Malaga man away from Emirates Stadium.
"Atletico are convinced that they can persuade the player to join them. Then they just have to pay the money. There will be one year left on his contract in the summer, and will be available for cheaper,” he said.
Where do Liverpool fit into this potential transfer saga?
Atletico Madrid’s Cazorla objective could prove beneficial for Liverpool should they decide to revive their long-standing interest in midfielder Arda Turan.
Aside from the speculation on that occasion, Turan has in the past confessed his dream of moving to Merseyside one day and representing the team he describes as his boyhood club.
His future in the Spanish capital has often been questioned this season and his agent threw a spanner in the works over recent weeks by telling publication Mundo Deportivo that he could leave this summer.
“At the end of the season, Arda Turan will be 28, it is the right time for a transfer. That is what we think. The transfer should be made to one of the top eight teams in Europe. If not, no,” Ahmet Bulut explained.
Brendan Rodgers added quantity to his squad last summer, and now the club has good competition for places there will likely be a shift to focusing on top quality during this summer’s transfer window.
Turan is renowned for being versatile across the midfield and his ability is unquestionable – he would be a top quality signing for any side in world football.
It’s plausible to suggest that Atleti would object to the former Galatasaray star leaving, but bringing in Cazorla as a like-for-like replacement would certainly soften the blow.