Torreira joins Diego Simeone's team on a one year loan deal, with Atletico having the option to make the move permanent for a fee of 20 million euros.
The Uruguay international has made 89 appearances since joining Arsenal from Serie A side Sampdoria ahead of the 2018/19 season.
The combative midfielder was part of the FA Cup match-winning squad and his goal in the 4-2 north London derby win at Emirates Stadium in November 2018 was a highlight during his first season.
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