Atletico agreed to an amount that exceeded the player's 120-milion-euro buyout clause because they will not make the payment in one lump sum, reports Efe news.
The Madrid club uploaded a video showing the 19-year-old striker inside the Prado Museum in Madrid along with the phrase "Welcome Joao Felix. Pure Talent," while Benfica communicated the deal on Wednesday to the Portuguese Securities Market Commission (CMVM).
Benfica "has reached an agreement with Club Atletico de Madrid for the transfer of the sports rights of the player Joao Felix for 126 million euros," a statement on the Lisbon-based club's website said.
"In the information provided to the CMVM, Benfica explains that Atletico de Madrid 'will promptly pay an amount of 30 million euros and that Benfica SAD will carry out a discount operation without recourse of the remaining 96 million euros, and the financial costs associated with this operation will be 6 million euros.'"
Felix, who has signed a contract with Atletico covering the next seven seasons, comes to Wanda Metropolitano Stadium after just one season at soccer's highest level.
Felix, who joined Benfica's youth system at age 15, played 43 official matches last season and recorded 20 goals and 11 assists to help lead the club to the Portuguese-league title.
He is the fifth player Atletico has added this offseason after Brazilian central defender Felipe, Spanish midfielder Marcos Llorente, Mexican midfielder Hector Herrera and Brazilian left back Renan Lodi.
( With inputs from IANS )