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Mauricio Pellegrino has stepped down as coach of Copa del Rey runners-up Alaves.
Ter Stegen, 25, had two years left on his previous deal but had made it clear that he was keen to prolong his stay.
Herrera is reportedly a transfer target for incoming Barcelona coach Ernesto Valverde.
Chelsea striker Diego Costa would be welcomed back at Atletico Madrid with open arms, according to the Spanish side's assistant coach Juan Vizcaino.
Manchester United target Antoine Griezmann will not leave Atletico Madrid this summer, according to the Spanish club's assistant coach Juan Vizcaino.
Brazil legend Ronaldo says he would have stayed longer than five years at Real Madrid if not for arguments with coach Fabio Capello about his weight.