Atletico Madrid's Diego Costa (L) and Barcelona's Jordi Alba fight for the ball during their Spanish first division soccer match at Vicente Calderon stadium in Madrid January 11, 2014.

Atletico Madrid manager Diego Simeone has hailed Chelsea's signing of Diego Costa, claiming that his former striker "still has much room to improve" as he is still only 25 years old.

Following several weeks of negotiations the Blues confirmed on Tuesday they had agreed a deal to take the Spanish international away from the Vicente Calderon, after meeting his £30m release clause.

Simeone enjoyed Costa's clinical skills in front of goal last season when the Spanish international plundered 27 La Liga goals but believes he can actually improve on that tally in the Premier League.

"I hope he has a great season at Chelsea and adapts quickly to their system and the coach to let the team take full advantage of his characteristics. He still has much room to improve and grow. He's at an age where he can continue to improve, so let's hope he can develop further. I see a player very much on the way up," Simeone was quoted as saying by AS.

"Diego Costa is where he wants to be and I am absolutely thrilled for him. I love Diego as a player - at Atletico Madrid he gave us so much and I will always be grateful to those players who have given me their all."

Costa's departure represents a big blow for Simeone but he is confident of replacing him with an even better striker.

Atletico Madrid have previously proven themselves able to cope with a raft of big-name departures, including Diego Forlan, Fernando Torres, Sergio Aguero and Radamel Falcao.

"Top strikers have come and gone at Atletico [but] the club have always seemed to be able to minimise the impact when big players leave," Simeone added.

"Fernando Torres left, Diego Forlan left, Sergio Aguero left, Radamel Falcao left - and now Costa and David Villa have moved on - and the team have remained competitive.

"Ateltico have always done well in that respect and I hope the same thing will happen this time with a suitable replacement for Diego."