The Madrid 2012 Olympic bid is based on the use of La Peineta, currently a 20,000 capacity athletics stadium in the north of the city.
The agreement was closed between Esperanza Aguirre, president of Madrid, Alberto Gallardon, the city’s mayor, and Atletico’s president, Enrique Cerezo.
Recent press speculation has indicated that Athletico Madrid would be the future tenants of the stadium if the Olympic bid is successful.
Yesterdays agreement is seen as a move to address the Olympic facilities legacy issue, ahead of next week's visit to Madrid by IOC members.
