Atletico Madrid have signed the Uruguayan striker Diego Forlan in a €21m deal from Villarreal.

The former Manchester United player, who shared the 2004-05 European Golden Boot with Thierry Henry after finishing as La Liga’s top scorer with 25 goals, has agreed a four-year deal at the Vicente Calderon.

Forlan scored 54 times in three league seasons with Villarreal, had been linked with a return to the Premiership but has opted to remain in Spain.

Forlan’s arrival increases speculation about the future of Fernando Torres who has been linked with a move to Liverpool. The money from the sale of Torres that has enabled Atlético to move for Forlán and also his former Villarreal team-mate Juan Roman Riquelme, who has been tipped to join from Boca Juniors.

The deal for Torres’s is expected to be in the region of €40m. Luis García has agreed terms with Atlético and, pending a medical, will move in the other direction for around £4m.