Talks are under way to make striker Matheus Cunha and defender Felipe the first two signings of the Julen Lopetegui era.
Atletico are looking to offload some players following their early exit from the Champions League this season.
Villa have also been linked with talented forward Cunha, who has eight Brazil caps but did not make the World Cup squad, while Turkish side Besiktas were also reportedly keen on Felipe, who has played for his country twice.
Cunha, 23, has made 11 appearances so far this campaign for Diego Simeone’s side, who sit in fifth place in La Liga. He has found it difficult to force his way into a star-studded team with lots of competition for places in forward areas – he finds Portugal’s Joao Felix and France’s Antoine Griezmann ahead of him in the pecking order.
He signed for the Spanish club in August 2021, and since arriving has netted seven times in 54 appearances, also managing eight assists.
He signed a five-year deal in Madrid after leaving Hertha Berlin – a side where he was much more prolific in front of goal.
He joined the German side in January 2020 and enjoyed a fruitful spell, scoring 13 times, but also being a creative force too – registering 10 assists in 40 appearances.
Meanwhile, 33-year-old Felipe is a league title winner in Brazil, Portugal and Spain – the latter with Atletico in the 2020/21 season.
He has been in Madrid since 2019, but only made three appearances this season – two in LaLiga and one in the Champions League.
Starting his senior career with Corinthians in his homeland, Felipe moved to Porto the same summer Nuno Espirito Santo took over as their manager.
Winning the league in both countries, he then went on to Spain to triumph again with Madrid.
Meanwhile, Wolves played out an entertaining 2-2 draw with local rivals Birmingham City in a training game at Compton Park over the weekend.
The fixture was a chance to give players much-need minutes as they continue to prepare for the return of football after the World Cup.
Diego Costa got Wolves’ first goal of the afternoon, finishing off Nelson Semedo’s cross to round off a fine team move.
And Daniel Podence added another for Wolves from the penalty spot.
Wolves’ next competitive match is against Gillingham in the fourth round of the Carabao Cup on Tuesday, December 20.