Carrasco has signed a four-year contract which will keep him at Wanda Metropolitano until the summer of 2024.
The 27-year-old initially joined the La Liga giants on loan from the Chinese side in the January transfer window where he helped the Rojiblancos to reach the quarter-final stage of the Champions League and a third-place finish in the league.
The Belgian first signed for the Madrid-based team from Ligue 1 side AS Monaco in 2015 and played over 120 times for Diego Simeone’s men, scoring 23 times while also providing 17 assists.
Carrasco’s unforgettable moment at Atletico came in 2016 when he scored for the club in the UCL final against Real Madrid, which they drew 1-1 before losing in a penalty shootout.
Atletico Madrid took to their official club’s website to announce the signing of the Monaco academy graduate.
“Our club has reached an agreement with Dalian Professional Football Club over the transfer of Yannick Carrasco,” Atletico Madrid’s official statement read.
“The Belgian has signed a four-year contract and will continue at Atlético de Madrid, where he played on loan during the second half of last season.
“The 27-year-old was key to our third-place finish in LaLiga, netting one goal and providing four assists in 16 games and helping us to secure Champions League football for the eighth straight season.”
