The Argentine has penned a new contract with Atletico to 2030. The agreement also includes a buyout clause set at €500m.
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The son of Atletico coach Diego Simeone, 'Giuli' is regarded as a pillar for the team now being built by the club's new-look management team.
This season, Giuli has made 27 appearances, scoring three goals and making seven assists.
The attacker joined Atletico in 2019 from River Plate and spent time away on-loan with Real Zaragoza and Alaves before establishing himself with Atleti last season.