Luis, who only joined Jose Mourinho's side in 2014 for £15.8million, arrived in Madrid on Tuesday evening.
According to Inside Spanish Football, the defender travelled to the Vicente Calderon on Wednesday to finalise personal terms before undergoing a medical.
The official announcement of the move is expected to be made within days.
Luis is set to make his return to Atletico in a €16m (£11m) deal after Chelsea deemed the left-back as surplus to requirements.
GETTY
Filipe Luis is close to finalising his return to Atletico Madrid
Mourinho confirmed on Tuesday that the Blues are in the process of selling the 29-year-old who made just 15 appearances for the club.
"In this moment we need a left-back because I think we are selling Filipe Luis now or tomorrow," he said.
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