Transfer specialist Fabrizio Romano has confirmed the move with his trademark "Here We Go", indicating the deal has been agreed between all parties.
Atletico will pay Sporting an initial fee of 40 million euros, with additional performance-related add-ons included in the agreement.
Hjulmand is expected to travel to Madrid today to complete his medical before signing his contract, with official confirmation from both clubs expected once the final paperwork has been completed.
The Spanish club increased their efforts to sign the midfielder after an opening bid was turned down by Sporting, and negotiations have now resulted in a full agreement.
The 26-year-old joined Sporting from Lecce in 2023 and quickly became one of the Portuguese club's most influential players. His leadership qualities saw him named captain, while his consistent performances also earned him a regular place in the Denmark national team, where he has made 27 appearances.
Hjulmand is expected to report for Atletico's pre-season preparations, which begin around 13 July, as coach Diego Simeone looks to strengthen his midfield ahead of the 2026-27 campaign.
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