The La Liga club were thought to be offered Hernandez as part of a potential cash-plus-player deal for Radamel Falcao. But the report claims Sevilla are more interested in snapping up Negredo from Sevilla.
The Spain international has himself been linked with a move to the Premier League, with Everton thought to be keen on the forward.
But should he favour remaining in Spain, Negredo could prefer a switch to the Vicente Calderon.
Atletico's interest does raise the possibility that Falcao could be on his way in the summer though, with speculation mounting that a number of top European clubs will be scrapping for his signature at the end of the season.
The 27-year-old forward has been one of the world's top strikers over the past 18 months.
And despite Manchester United's strong stable of strikers, the Premier League leaders were mentioned as possible suitors for the Colombian international.
Negredo is currently Sevilla's top scorer with 17 league goals. The club sit in 10th place in La Liga, and face city rivals Real Betis on Friday.