Manchester United have an alternative to extending the previously approved four-year deal by the midfielder when he put pen to paper for the Old Trafford outfit following a £28 million move from Athletic Bilbao back in 2014.
Where will Mesut Ozil end up when his Arsenal contract expires next summer?
Niguez has a £134million buyout clause in his contract but the Star predicts that he "could leave for less".
However, United's biggest obstacle in any potential deal for the player would be reaching an agreement with Atletico as Niguez signed a nine-year deal with the club in July. "Our contacts with Arsenal continue and are going in a positive way".
The Chilean forward tried to force through a move to Manchester City during the summer transfer window but the transfer broke down, while French giants Paris Saint-Germain are also reported to be interested in his services.
Atletico have reportedly contacted the former Real Madrid star with a view to luring him to the Wanda Metropolitano.
"I have always said that the fact we didn't find an agreement previous year doesn't mean the player will necessarily leave", he was reported as saying.
They also report that Ozil, who has won scored one goal and picked up two assists for the Gunners this season, has asked the Gunners for a £330,000-a-week deal.