Winger Gelson only joined Atleti in July 2018, but the former Sporting CP star failed to establish himself under Diego Simeone.
The Portugal international subsequently joined Ligue 1 strugglers Monaco in January, scoring four goals in 16 appearances.
And Gelson has now made his switch to Monaco permanent, signing a five-year contract.
“I am very happy to be able to join Monaco in time and I am now very much looking forward to seeing the group again in preparation for the upcoming season,” Gelson told the club’s official website.
“Despite the difficult situation, we managed to show some good things last season and I will do everything to help the club achieve its goals this season.”
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