Barcelona have signed Atletico Madrid forward Joao Felix on loan until the end of the season, the Spanish champions said Friday.

"Barcelona and Atletico Madrid have reached an agreement for the loan of player Joao Felix until June 30, 2024. There is no option to buy," said the Catalan club in a statement.

Barcelona loaned winger Ansu Fati to Brighton and defender Clement Lenglet to Aston Villa earlier Friday to help create room to accomodate Felix on the wage bill and register the player with LaLiga, who have strict financial fair play rules.

Felix became the fifth most expensive player in history when Atletico Madrid signed him from Benfica in 2019 for 126 million euros ($136 million) at just 19 years old.

The Portuguese forward, 23, failed to find consistent form in the Spanish capital and Atletico loaned him to Chelsea last season, where he also struggled.

Felix has spoken out about his desire to play for Barcelona in the past.

"The club publicly expresses their gratitude to the player for the financial effort made (to join) and his desire to wear the Barca shirt," added Barcelona.

Barcelona are also close to signing right-back Joao Cancelo on loan from Manchester City, according to Spanish reports.

Cancelo, 29, fell out of favour at Manchester City last season, joining Bayern Munich on loan in January.

The Portugal international was pivotal for City coach Pep Guardiola in previous years as he played an important role in two Premier League triumphs.

Cancelo signed a five-year deal with City in February 2022 but less than a year later Guardiola sent him to Bayern.