The Brazilian midfielder is looking for a path away from his unfortunate situation at the German club, and the cash-rich Spanish side may offer him just the opportunity.
Malaga are looking to offer an escape route to Wolfsburg outcast Diego, according to reports in Globoesporte and WAZ.
The Brazilian playmaker is currently on the lookout for a new club after agreeing, at the end of last season, to part ways with Wolfsburg.
A move back to his homeland has been mooted as a possibility, but Diego's wage demands are said make such a transfer unlikely.
The former Juventus player had admitted, through agent and father Djair da Cunha, that a Spanish club had expressed an interest in signing him, and reports in Spain and Germany claim that club to be Malaga, who are thought to be looking for a creative player for their midfield.
Malaga are equipped with a hefty transfer kitty, and as such they would have no qualms in meeting Wolfsburg's asking price of €10 million, or the player's salary at the Volkswagen Arena.
