The 27-year-old has signed a four-year contract with Atleti, where he spent the second half of last season on loan.
The Spanish club have not disclosed a transfer fee for Carrasco, who they sold to Dalian for €30m in 2018.
[📝] ¡@CarrascoY21 ya es rojiblanco! ⚡
🇧🇪 El internacional belga firma con nuestro club para las siguientes 4️⃣ temporadas tras llegar a un acuerdo de traspaso con el Dalian Professional FC 🤩
— Atlético de Madrid (@Atleti) September 8, 2020
The Belgian impressed Diego Simeone enough for the Atletico boss to sanction his permanent signing.
Carrasco scored one goal and provided four assists in his 16 appearances for Atleti, helping them to secure third place.