AS says the two parties have agreed to continue together at least until the end of next season.
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The Argentine coach is still under contract until 2027 with a one-year extension option. Further discussions will take place later as to whether or not to enable this option.
The coach and the club are so close that nothing will be rushed.
Simeone has been in charge of Atletico since 2011, leading the club to two Ligas, two Europa Leagues and even a Copa del Rey, in addition to having been twice in the Champions League final, beaten each time by Real Madrid.