Atletico Madrid snap up Diego

Atletico Madrid have signed midfielder Diego from Wolfsburg for a reported 1.5 million euros.

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The 28-year-old, whose contract with the Bundesliga club was set to expire in the summer, had long been linked with a return to Atletico -- where he spent a successful season on loan in 2011-12.

There had also been strong signals that the Brazilian would return to former club Santos on a free transfer at the end of the current campaign. However, he has instead opted for a move to the Spanish capital.

“Atletico got in touch with us yesterday [Thursday] evening,” Wolfsburg sporting director Klaus Allofs told kicker. “We considered the pros and cons. Selling Diego is a bit of a step back for us.”

Atletico made the move after freeing up a space in their squad by loaning midfielder Josuha Guilavogui back to St Etienne for the rest of the season.

Diego joined Wolfsburg -- who signed Kevin De Bruyne from Chelsea earlier this month -- in 2010 from Juventus. He made a total of 77 appearances in that time, scoring 19 goals and creating a further 19.