The 19-year-old is out of contract a tthe end of the season and Atletico admits they are keen on signing the youngster.
“He has entered into our plans for next season,” confirmed the club’s president president Enrique Cerezo.
“He is a player that interests us. The decision rests with the kid because he is free in June.”
Merida has confirmed that he is in talks with Arsenal over a new deal, but is yet to decide on his future.
“At the moment I am talking to the club so I don’t know what is going to happen,” said the teenager.
“Hopefully everything is going to be all right but we are going to sit down and talk about it.
“I am really happy in London.”