The striker is at the top of Jose Mourinho's wishlist as he aims to rejuvenate his strike force after a disappointing season in front of goal.
Atletico have a history of nurturing and selling top finishers - with Sergio Aguero, Fernando Torres and most recently Radamel Falcao being sold on for big money.
Speaking to AS, Simeone said about Costa's future: "It depends on him and what he believes is best for his future. I will support any decision.
"It is normal that Chelsea are interested in him. He has good economic potential. Eto'o gets older and [they want] Diego Costa to do their work but now he's ours.
"If Costa decides to leave the first thing I say is 'it's okay by me'. Our philosophy is to improve the player, it was critical for us that Falcao went to Monaco, you cannot say no, it gave us life."
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