Atletico Madrid president Enrique Cerezo has claimed that Diego Simeone's new contract "was something that all Atleticos were waiting to happen".
It has been confirmed that the Argentine has signed a new deal at the Vicente Calderon that will run until 2020.
Manchester City were believed to have earmarked Simeone as their manager for next season, but all speculation has now been ended.
"The renewal was something that all Atleticos were waiting to happen," Cerezo told reporters.
Simeone led Atletico to their first league title since 1996 last season.
