Atletico signed the 18-year-old in January, and he is currently on-loan with Portugal’s Sporting Braga.
Diego said: “There were other interested clubs, a lot of talk about the big ones in Portugal, Porto mainly, but when it appeared that Atletico were interested and showed that they wanted me, there was only one decision to make.
“For me it is a dream to play in the Liga and for a team like Atletico. In Brazil there’s a lot of interest in the Spanish Liga, I used to watch the games at home in Sao Paulo, it is a very special place for a player and very demanding also.
“It’s a big jump for me, no doubt. Atletico is a great team, which is why I am excited about going there.”