The 32-year-old striker has been without a club since leaving La Liga leaders Atletico Madrid by mutual consent in January.
Diego Costa is reportedly on the verge of signing a two-year deal with Brazilian club Palmeiras, according to Sky Sports.
The former Chelsea star ended his contract at Atletico Madrid six months early in January due to personal reasons. He was linked with a Premier League return to Manchester City and Wolves on a short-term deal.
However, Costa is now locked in negotiations with a club he supported as a child in Palmeiras. He is in Brazil and reportedly has a two-year offer, worth around £2.6 million-per-year after tax, on the table.
The Brazilian-born striker reportedly came close to joining Al-Shabab before he headed back to South America. The Saudi Arabian side, however, couldn’t match his contract demands. Moves to Turkey and Qatar were also a possibility at one stage.
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