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Diego Simeone extends contract with Atlético Madrid to 2027

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Why Atletico Madrid are very much in the LaLiga title race (1:48)

Craig Burley reflects on Atletico Madrid's title chances after their 2-1 win vs. Alaves left them just three points off the top with a game in hand. (1:48)

Atlético Madrid manager Diego Simeone on Thursday signed a three-year contract extension which will take him to 2027 with the club.

Simeone, who was appointed as Atleti head coach in December 2011, is the most successful manager in the club's history.

In his 12 years as Atlético Madrid coach, he has won two LaLiga titles, one Copa del Rey, two Europa Leagues, two UEFA Super Cups and one Spanish Supercopa. He has also led the club to two UEFA Champions League finals.

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Sources told ESPN last week that Simeone's agent and sister, Natalia Simeone, met with Atleti chief executive Miguel Ángel Gil Marín for talks over a new contract for the coach.

Simeone received a lucrative offer to coach Saudi Pro League club Al Ahli last summer, but sources told ESPN that his preference was to remain with the team for which made more than 100 appearances across two spells as a player.

The 53-year-old coached River Plate among other clubs in his native Argentina and had a short spell at Italian club Catania before eventually taking over at Atlético Madrid.

After their 6-0 win vs. Celtic on Sunday, Atleti now sit fourth in the league table, six points behind leaders Girona.

Simeone's team host Villarreal on Sunday in LaLiga.