The 28-year-old had been widely expected to leave Tottenham this summer, and he appears to have gotten his wish.
According to Fabrizio Romano, Atletico Madrid have agreed a £34 million package, including add-ons, with the north London club.
Romero had also been linked with a move to Inter Milan, but the Italian side were unwilling to match his contract demands.
There had even been reports that Arsenal were interested and Romero was open to becoming the first player to move between the two clubs since Sol Campbell in 2001.
Tottenham never had any intention of sanctioning such a move; however, Romero will now become Atletico's fourth signing of the summer.