Midfielder Lemar, who is currently on international duty with France, is expected to join the Spanish club once the World Cup is over.
"Atletico Madrid and AS Monaco have achieved a preliminary agreement over the transfer of Thomas Lemar to our club,” read an Atletico club statement.
"Over the next days, both clubs will work to close the agreement for the definitive transfer."
The announcement comes on the same day that Atletico forward Antoine Griezmann refused to comment on his future, amid media speculation he is on the verge of joining domestic rivals Barcelona.
(Reporting by Joseph Cassinelli; Editing by Toby Davis)
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