The German champions are looking to add to their squad for the coming season, and Niguez has been identified as the man to fill the void left by Thiago Alcantara in midfield.
And a big-money deal appears to be on the cards after Bayern agreed to pay the large fee for the 26-year-old, who has fallen out of favor this season under Diego Simeone.
According to Radio Marca, Atletico would immediately reinvest that money into finding a successor for him, with Rodrigo de Paul of Udinese being their top target.
Udinese has previously informed possible suitors that any offer below £35 million for the Argentine this summer will be rejected.
According to Radio Marca, the Spanish champions will use half of the £68 million they would receive for Niguez to support a move for De Paul.
He only played the full 90 minutes in 12 of his 33 LaLiga outings last season, and his 13-year connection with the club appears to be coming to an end.
The Spaniard, who came through the Atleti ranks, is widely considered as one of Europe's best midfielders and was linked with a £70 million move to Manchester United earlier this season.
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