Toulalan, 29, joined Malaga from Lyon in 2011 and has a release clause of 30 million euros built into his contract.
He has started 10 games in La Liga this season for the financially unstable club and agent Michael Manuello says rival Spanish teams are monitoring his situation.
“The interest from Atletico in Toulalan is very strong, but there is nothing done. Valencia have also asked after him,” Michael Manuello told reporters today.
“Right now, his club is Malaga and he is 100 per cent focused on ending his injury issues once and for all and recovering as soon as possible to lead his team.
“Indeed, yesterday he held a meeting with (Manuel) Pellegrini and informed him that his mind is set only on the league and the Champions League tie with Porto.”