"The transfer ... is expected to be finalised on Wednesday, when the striker will train with his new team mates in the first pre-season session and will afterwards sign his contract," Atletico said on their website (www.clubatleticodemadrid.com).
Villarreal also confirmed the agreement on their website (www.villarrealcf.es). Neither club disclosed financial details but Vietto has a market value of 20 million euros ($22 million), according to Transfermarkt.com.
Considered one of the most exciting young talents in La Liga, Vietto will link up again with compatriot and former coach Diego Simeone.
Simeone gave him his professional debut at the age of 17 when he brought him on for the last five minutes of Racing Club's 1-1 league draw at home to Lanus in October 2011 when he was coach at the Argentine club.
Vietto capped a fine display at Atletico's Calderon stadium in December with a superb 84th-minute strike that secured a 1-0 win for Villarreal.
Following the exit of Croatia striker Mario Mandzukic, who has joined Juventus, Vietto is the second forward Atletico have brought in since the end of last season after they agreed to buy Colombia striker Jackson Martinez from Porto.
($1 = 0.9086 euros)
(Reporting by Iain Rogers, editing by Toby Davis)
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