Arsenal boss Arsene Wenger rates Diego Simeone's Atletico Madrid as Champions League contenders.

Atletico have impressed Wenger so far this season and he believes they are genuine European challengers.

"For me, Atletico Madrid may be one of the surprises, they can do what Borussia Dortmund did last season. Even having lost Falcao, they have a good defence and a very good goalkeeper," said Wenger on Eurosport.

"They have really good players in midfield and of course there is Diego Costa. This guy is an animal, he can score in any situation."

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