Diego Simeone has confirmed that his contract with Atlético Madrid will now expire in June 2018 – two years earlier than the previous arrangement.

Simeone, who has led Atlético to two Champions League finals in the past three seasons, signed a five-year contract with the club in March 2015 which was due to expire in 2020. However, after reports in Spain this week said the 46-year-old had negotiated the reduction, Simeone confirmed the change but insisted he could still stay on beyond 2018.

“I can confirm it’s true,” he said. “We have spoken with the club and made the best decisions for the club and the team; we’ve taken this decision in conjunction with the club’s directors and it doesn’t alter the possibility of renewing terms again once the new arrangement ends. It’s us showing what we feel for the club by our deeds. Everyone can relax, we’re fine.”

Asked for details over why the change had been implemented, Simeone added: “We needed to do what we feel is fair; we understand that it’s an important situation for all of us but what is written in contracts is private. The only thing I ask is that the lads in the team give their heart and soul. In two years’ time we can renew and sign a new deal, it doesn’t mean it’s the end.”

Atlético, who have picked up five points from their first three La Liga matches this season, face Sporting Gijon on Saturday.