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Hjulmand follows Bayer Leverkusen's Alex Grimaldo through the doors at Atleti, signing a five-year deal for a reported €40 million ($65.7 million) fee, with a further €5 million ($8.2 million) due in add-ons.

The Denmark international made 141 appearances for Sporting after joining it from Serie A club Lecce in 2023, scoring 10 goals as well as providing 12 assists.

He captained Sporting to back-to-back Primeira Liga titles in 2023-2024 and 2024-2025, while also helping the club win its 18th Taca de Portugal two seasons ago.

It was also reported that the 27-year-old was of interest to Arsenal and Chelsea, but he has instead chosen to join Atletico.

"It's a very big club. I've been watching it from a distance since I was a child, always winning trophies in Spain and Europe," Hjulmand said.

"It is a very respected club in Europe and deserves to be. It is an honour to be part of it. It means a lot to me, because being part of Atleti is a dream come true."

Hjulmand joins an Atletico side that finished 23 points behind champion Barcelona, but did reach the semi-finals of the UEFA Champions League before losing to beaten finalist Arsenal.

"I'm very excited and also nervous, as it always happens when you arrive in a new place, but I think I'll adapt easily, from what I've heard about the players," Hjulmand added.

"I am looking forward to meeting you and learning the language as quickly as possible. I can't wait to start training on Monday."

Atletico begins its LaLiga campaign at home to Malaga on 17 August (AEST), before another home clash against Villarreal a week later.