Liverpool boss Rafael Benitez is keen to bring in a left-winger and believes Simao is an ideal signing.
Simao has only a year left on his contract with Atletico and would be interested in a move to the Premier League, according to The Daily Star.
He said: “Nobody has spoken with me in the last days about this subject.
“I only say that some people in Madrid have suggested that Atletico are preparing my sale, but I don’t know too much.
“I have always been interested in playing in the Premier League, but my head is in the World Cup and I have a deal with Atletico.”