The Uruguay striker has been linked with Liverpool and Tottenham.
But Forlan says: “I am very happy at Atletico Madrid and have three years left on my current contract so I will be definitely staying.
“The English Premier League has very strong teams and you never know what will happen in future but for now I am an Atletico player and will be playing for them in the coming season.
“Madrid is a great city and La Liga is a fantastic league so I am enjoying my football at Atletico and looking forward to the new season."
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