The Spain international had two years left to run on his previous deal and reached an agreement to add a further five years to his stay.
“He is one of this team’s leaders and has grown up since very young with the values of our Academy, so knowing that he will continue with us for many more years is the best of news,” sporting director Jose Luis Perez Caminero told the club’s website.
“He is a very dear and respected player in the dressing room and is going to go down in the club’s history.”
The 25-year-old is a product of Atletico’s youth academy and made his senior debut in 2009. He has since made over 250 appearances for the club, winning five trophies including the Copa Del Rey in 2013 and the league title in 2014.
(Reporting by Aditi Prakash in Bengaluru; Editing by Peter Rutherford)
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