The Uruguayan defender, who in May disclosed he would be leaving the club this summer has been purchased by Inter Milan almost two months from his revelation.
Inter Milan confirmed the player has signed a three-year contract which will tie him at the club until 2022.
"FC Internazionale Milano announces that a contract has been agreed with Diego Godin that will run until 30 June 2022," Inter Milan said.
After spending three years at Villarreal, Diego Godin joined Atletico Madrid in 2010 as he made 389 appearances for the Wanda Metropolitano outfit.
The 33-year-old in his spell with Atletico Madrid won one Spanish LaLiga title, two Europa League titles, one Copa del Rey, Spanish Super Cup and three UEFA Super Cups.
Aside winning trophies with the side, Godin guided Diego Simone’s men to two Champions League finals in 2014 and 2016 having lost both finals to city rivals Real Madrid.
The new Inter Milan defender played thirty LaLiga games for Atletico Madrid, scoring three goals and one assist in the 2018/19 season.
Antonio Conte, the new manager for Inter Milan is looking to rebuild a side that finished fourth on the league log, 21 points adrift champions Juventus.
Godin will now join Inter Milan on a free transfer after refusing to renew his contract with Atleti.
