The Spain international was heavily linked with a return to Atletico Madrid in the summer.
But a transfer failed to materialise after the Blues refused to part with their prized asset.
“Chelsea star Diego Costa was linked with Atletico Madrid over the summer”
And Simeone has revealed Costa’s contract at Stamford Bridge was a sticking point.
“I was crystal clear with Diego about what we were trying to do and how long we’d wait for an answer and that’s why we’ve still got a great relationship today,” he told Marca.
“The problem we came up against was that there tend not to be buyout clauses in England and so Chelsea could say to us: ‘we want £180m’ or ‘…we don’t want to sell…’
“From my point of view both I and the club did everything we possibly could to get him back to Atletico but what happened was we set a date after which we had to take action and we signed Kevin Gameiro instead.”
Costa has bagged 13 goals for the Blues this season to fire them to the top of the Premier League.
The Blues coughed up £32m to bring him to west London in 2014.