The 26-year-old spent a highly-successful season on loan at St. Mary's last term after finding playing time limited at the Vicente Calderon Stadium.
Alderweireld's performances have led to interest from the likes of North London giants Arsenal and Tottenham. With reports on Sunday suggesting that Tottenham had agreed a deal with the Spanish club.
However, Southampton remain confident of signing the Belgium international for a cut-price £6.8 million the exit clause which formed part of his loan deal.
Atletico Madrid had the option to cancel it by paying Saints a £1.5 million fee, but reports suggest they did not do so in time.
As such, Southampton believe they are entitled to sign the defender and could even look at a legal argument should he go elsewhere.
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