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The 33-year-old Brazilian striker is currently a free agent after he was released by Atletico Mineiro in January, with Costa signing for the club only six months ago.
The former Atletico Madrid and Chelsea star was recently linked with Arsenal, with Mikel Arteta wanting to address his shortage of striking options.
Costa reportedly turned down a move to La Liga club Cadiz, while it was believed that Arsenal made an ‘informal consultation’ over his availability.
Corinthians were another club ready to snap up the free agent, with transfer expert Fabrizio Romano now reporting that the Brazilian side are “pushing” for the deal.
Romano claims a verbal agreement between Corinthians and Costa is now “closer,” but the club are now waiting for a “final answer” from the Spain international.
“Corinthians are pushing to complete the signing of Diego Costa in the next [few] hours,” he tweeted.
“Verbal agreement now closer -- still waiting for last details and final answer from Brazilian striker who's now [a] free agent.
“Timao made the best proposal as of now. No talks with Arsenal.”
Corinthians are pushing to complete the signing of Diego Costa in the next hours. Verbal agreement now closer - still waiting for last details and final answer from Brazilian striker who's now free agent. 🇧🇷 #Timao— Fabrizio Romano (@FabrizioRomano) January 21, 2022
Timão made the best proposal as of now. No talks with Arsenal. pic.twitter.com/EP4RPGQVh2
Costa made his second exit from Atletico in 2020 after his contract was terminated, with the Brazil-born free agent going on to make 19 appearances for Mineiro.
Mineiro director of football Rodrigo Caetano confirmed that Costa said he was struggling with “adaptation” and “personal issues” during his time at the club.
Former England international Paul Robinson had urged Newcastle to challenge Arsenal in the race to sign a “proven goalscorer” like Costa.
“If I was Newcastle, I’d take him tomorrow,” he told Football Insider.
“He is a proven goalscorer at the highest level. He has got an edge to him as well. He’s a fighter. That edge could get Newcastle out of trouble.
“Draws are no good for them at the moment. They need to win football matches and Costa is a match-winner. You try to take positives out of the game against Watford but there’s few.
“If you put a character like Diego Costa in that dressing room… Wow. All of a sudden, the feeling in that dressing room could change. He’d give them hope.
“I’d take him straight away. The fans would love him up there. He’d be absolutely brilliant.”