The two Manchester clubs are also reportedly interested in his signing, but he has a £61.9m release clause at Atletico.
The 27-year-old German is expecting a highly competitive affair when the two sides meet at the weekend.
The former Chelsea boss has been strongly linked with the role in recent weeks.
The 42-year-old Welshman has been serving as Louis van Gaal's assistant at Old Trafford.
Mundo Deportivo recently reported that Paris Saint-Germain were ready to battle for his services with a £77.4m bid.
David Silva is likely to miss the rest of the month with an ankle injury.
IBTimes UK spoke to two industry experts about the consequences of the Foxes lifting the title.
The La Liga giants have registered 80 wins, 11 draws and nine defeats under Luis Enrique.
Chelsea are also closely monitoring the situation of the Spaniard.
Thierry Henry is not sure whether the Gunners have the mentality to win the title.
The 22-year-old striker has fired a warning to their Premier League title rivals.
Pep Guardiola wants his old guard at Manchester City to smoothen transition to the Premier League
Arsenal have failed to score in their last three games in the league.
Premier League round-up: Black Cats claim 2-2 draw at Anfield, while Tottenham move up to second with 1-0 win.
Brazilian football legend Ronaldinho thinks Manchester City can sign Neymar
The Foxes open up a six-point gap at the top of the table following brilliant win at the Etihad Stadium.
Manchester City host the Foxes at the Etihad. Find out where to watch the game live in the UK.
Recent reports claimed the former Chelsea and Manchester City striker is ready to leave Anfield in the summer.
The 25-year-old midfielder is reportedly being chased by multiple Premier League clubs.
Bayern are still in contention to win the treble this season.
Leicester take on City in the top of the table clash which could determine the outcome of the Premier League.
Vincent Kompany made a brief comeback on Boxing Day but limped off after nine minutes with a calf injury.