Forlan extends Atletico contract
The 30-year-old Uruguayan, who joined Atletico in 2007 as a replacement for Fernando Torres, told the club's website he hoped to help the struggling team turn around their season.
Atletico have just seven points and one win from 10 la Liga matches this term and are 18th in the standings out of 20.
"I am convinced that we can win trophies," said Forlan, who has scored four goals in the league this season but has looked well short of his best form.
"The club and the players and I will do all we can to win everything we can, even if the most important thing right now is to get ourselves out of the situation we are in," he added.
Forlan was top scorer in la Liga last season with 32 goals, which won him a second European Golden Shoe for the continent's leading marksman.
In his first la Liga season, he netted 25 goals to help Villarreal finish third and was joint top European scorer with Thierry Henry.