The Belgian international made 34 appearances in La Liga last season, scoring six times, while he failed to find the back of the net in his seven Champion League matches.
The 28-year-old's performances have been good enough to earn interest from the Premier League though, with Spurs being one of three teams that are hoping to land his signature, according to Fichajes.
Antonio Conte's club have been one of the first teams to make their interest in the forward clear, but both Newcastle United and Aston Villa are keeping tabs on him.
Carrasco would provide some versatility to Spurs due to his ability to play both wing-back and out wide, and would give more strength in depth to the squad.
Atletico Madrid are not actively looking to sell the Belgian in the upcoming transfer window, but they will be open to listening to good offers.