Atletico Madrid have confirmed they have agreed a deal with Inter that will see Sime Vrsaljko join the Serie A club.

Right-back Vrsaljko will head to Italy on an initial one-year loan but Inter have an option to complete a permanent deal for the 26-year-old.

Atleti have agreed a fee with PSV to sign Santiago Arias as a replacement on a five-year contract.

Vrsaljko started six games for Croatia in their surprise run to the World Cup final, though Zlatko Dalic's side were beaten 4-2 by France in Russia 2018's showpiece.

The former Sassuolo man will move to San Siro upon the successful completion of a medical and the finalisation of terms with the club.

Vrsaljko made 54 appearances for Atleti following his move to Spain in 2016, winning the Europa League last season.

Colombia international Arias, 26, will now compete with Juanfran for the right-back spot after sealing a switch to the Wanda Metropolitano.

Napoli had previously been linked with an €11million move for the player, who won three Eredivisie titles with PSV.