"Atletico de Madrid and Torino FC have reached an agreement for the transfer of Alessio Cerci to our club, pending the corresponding medical examination and the subsequent signing of the player's contract," Atletico said on their website (www.clubatleticodemadrid.com).
"The Italian international would commit for the next three seasons," they added.
Cerci, 27, a left-footer who can play on either wing, is a product of AS Roma's youth academy and after various loan spells in Italy and a stint at Fiorentina joined Torino in 2012.
He made his debut for Italy against Brazil in March 2013 and was part of their squad for the 2014 World Cup finals. He has made 13 appearances overall but has yet to score.
Atletico have made a number of astute-looking signings since winning La Liga and reaching the final of the Champions League last season, including Croatia striker Mario Mandzukic and France forward Antoine Griezmann.
Diego Costa, last season's top scorer, moved to Chelsea, while fellow Spain international David Villa left to join New York City FC.
"It was a clear goal to finish strengthening our squad to face all the challenges we have ahead of us this season," Atletico sporting director Jose Luis Perez Caminero said ahead of the closing of the transfer window later on Monday.
"He (Cerci) will give us penetration, speed, goals. It will allow us to have more alternatives in attack."