Fernando Torres and Atletico Madrid have come to agreement on a new one-year contract for the 2017-18 season, the club announced Wednesday.
Former Spain striker Torres is in his second stint with his boyhood club, having re-joined from AC Milan in January 2015 on the back of wildly contrasting spells at Liverpool and Chelsea in the Premier League.
Meanwhile, City rivals Real Madrid have signed left-back Theo Hernandez frm the club for a reported £22.8m fee on a six-year deal.
The 19-year-old Frenchman failed to play for the Atletico first team and spent last season on loan at Alaves.
He made 38 appearances in all competitions, including playing in the Copa del Rey final defeat by Barcelona.