The 23-year-old had been on loan at Real Madrid last season but the Spanish champions did not want to meet Arsenal's asking price offering just six million euros.

Reyes played a pivotal role in the final match of the season that saw Real take the title off their bitter rivals Barcelona as he scored two of 'the meringues' three goals in their victory over Real Mallorca.

Reyes joined Arsenal in January 2004 and made 110 appearances for the side, scoring 23 goals, after transferring from Sevilla in January 2004.

He was part of the Arsenal side that completed the 2003-04 Premiership season undefeated, and made his last appearance for the north London club in the Champions League final in Paris against Barcelona as a substitute, in May 2006.

Atletico have spent over 50 million euros (68 million US dol lars) on new signings since they finished seventh in the Primera Liga last season.

Uruguay striker Diego Forlan from Spanish side Villarreal, midfielder Luis Garcia from Liverpool and winger Simao Sabrosa from Benfica are among the club's new recruits.

The club is in the second qualifying round for the UEFA Cup.