Wolfburg have indicated that they are prepared to demote Diego to their reserve side, which would mean playing in the fourth division of German football.
The 27-year-old spent last season on loan at Atlético Madrid, and is hoping to leave the Volkswagen Arena on a permanent basis this summer.
Diego has, though, returned to pre-season training with Wolfsburg, but the Brazilian failed to impress the club’s coach Felix Magath during his first session back.
The midfielder now faces the prospect of playing for Wolfsburg II, and their trainer, Lorenz-Gunther Kostner, has stated that the player would be given no special treatment in his side.
”If Diego comes to us, I will tell him that he will be used like any other squad member,” the reserve coach told Bild.