The 27-year-old has been in superb form again this season, notching 10 Premier League goals so far and capturing the attention of several top sides across Europe.
Mateta also scored 16 league goals last season, showing his recent form isn't a flash in the pan. Palace want to keep hold of the striker, but he's only under contract until 2026, which puts them in a difficult situation.
If the French international doesn't sign a contract extension in the coming months, this summer will be the club's last chance to get a decent transfer fee for his services.
Sources have revealed to TEAMtalk that Atletico Madrid have shortlisted Mateta as Diego Simeone looks to strengthen his forward options for next season. Antoine Griezmann is 33 years old now and Simeone is looking at potential replacements.
As we reported in January, the Spanish giants are also interested in striker Fabio Silva, who is thriving with Las Palmas, on loan from Wolves.
Sources state that Mateta and Silva are at the top of Atletico's wish list for the summer, but they face competition for Mateta in particular.
Palace are yet to put a price tag on Mateta as they hope to convince him to sign a new contract, but they will be forced to listen to offers if he doesn't pen an extension.
TEAMtalk understands that there will be strong competition for the striker, with several Premier League and European clubs keeping tabs on his situation.
Palace hope that the high level of interest in Mateta will help drive up his price, with Manchester United being one club to have been linked recently.
Bringing in a suitable replacement for Griezmann will be far from straightforward, however, as the French forward has been one of the best players in Atletico's history.
Mikel Arteta has moved to reassure Arsenal fans over his future at the club, insisting there is no reason for concern despite having only 12 months remaining on his contract.
Barcelona remain in discussions with Manchester City over a potential deal for Rodri, with the Spanish midfielder already having agreed personal terms with the Catalan club.
Jeremy Doku has expressed his delight after signing a new five-year contract extension with Manchester City.
Bayern Munich sporting director Max Eberl has ruled out João Palhinha joining Aston Villa, insisting there is "no chance of an agreement" between the clubs.
