The Brazilian, who spent the 2011-12 season on loan at the Vicente Calderon, has been continually linked with a return to Los Colchoneros this summer.
However, on from Wolfsburg’s apparent desire to keep hold of the player and Atlet’s struggles to negotiate down their asking price, negotiations have seemingly faltered.
For Atleti’s President, it is now at a stage of the summer where the move is looking most unlikely.
“I said a while ago that it was difficult to have Diego playing at Atletico next season,” said Cerezo.
“And now I say that it is impossible. Diego will be very difficult to bring to Atletico for next season.
“We do not have any plans for his signing, but much time remains until the end of August.
“If there is a need or a problem with a player, it will be taken into account. The squad today is closed. If anything happens, it will be under exceptional circumstances.”
Atleti’s most prominent signing of the summer so far has been David Villa from Barcelona.
“Villa has been a great deal for Barca, Atletico Madrid and for the player.
“He is a great player and I hope he is with us for many years. I have always said that players should play where they want to.
“He had offers from England and Italy and he has opted to play in Spain.”