The Nigerian forward has struggled to reproduce last season's impressive performances, with his playing time dwindling in recent weeks.
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Lookman featured for just 14 minutes during Saturday's 2-0 victory over Levante.
Ahead of Atletico's Champions League showdown with Bayern Munich, Simeone urged the 28-year-old to remain patient, work harder and maintain confidence, insisting challenging periods are part of football.
“I have a lot of faith in him. I don’t want him to get frustrated because he’s not going through his best moment, because it’s part of life, part of the game, part of football,” Simeone told reporters.
“This is work, this is believing in what you do.”