Wolfsburg have confirmed that Brazilian midfielder Diego will move to Atletico Madrid on a season-long loan deal.
Diego, 28, has been on the verge of an exit since he was fined after storming out of the team hotel last season after being told he was a substitute.
Coach Felix Magath said: "I'm convinced Diego will play an outstanding role in Madrid. I wish him all the best.''
The midfielder was a $22 million purchase from Juventus but has been unable to recreate his Werder Bremen form in the Bundesliga.
Meanwhile, Atletico confirmed the transfer of Brazil midfielder Elias Mendes to Sporting Lisbon.
The 26-year-old international joined Atletico from Corinthians during last season's winter break and played 16 league and cup matches for the Rojiblancos.
Mendes has agreed a five-year contract with Sporting and will cost the Portuguese club just under nine million euros.