According to Goal, the player, who left Atletico Madrid in December 2020, is expected in Belo Horizonte in the coming days to undergo medical examinations and sign the deal, which is structured similarly to the one Atletico Mineiro handed to Hulk.
Costa's signing was made financially possible by the departures of Bueno, Gabriel, Diego Tardelli and Marrony.
Costa - born in Brazil, but represented Spain at national team level - hasn't played since last December, when his Atletico Madrid contract was terminated six months early.
The 32-year-old cited personal reasons for wanting to leave Wanda Metropolitano after being excused from training, having also made it clear that he had no intention of signing an extension.
He received interest from Benfica earlier in 2021, but a deal never materialised.
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