The former Barcelona striker has admitted he was set for a switch to England this summer before negotiations with the Vicente Calderon outfit took precedence
Villa eventually opted to remain in his homeland after Atletico agreed a 5.1 million euro deal with Barcelona, but the Spain international admits he was close to moving to England.
"We had a move to the Premier [League] in mind but then Atleti appeared and within three days all my personal terms had been agreed," the 31-year-old said.
"From a career point of view, they weren't lacking anything. They finished third in La Liga and will play in the Champions League. They beat Real Madrid to win the Copa del Rey.
"Starting from now, the best club in the world for me is Atletico Madrid."
Tottenham officials are understood to have been at the Confederations Cup for talks over a deal for Villa, while also reaching an agreement on a deal to sign Paulinho from Corinthians.
Villa netted 48 times in 119 games for Barcelona, after leaving Valencia for 34.2 million pounds in 2010, and he is Spain's all-time leading scorer with 56 goals from 92 appearances.
The forward says he is happy to fill the void left by Radamel Falcao, who joined Monaco for a reported 60 million euros earlier this summer.
"I have to talk to the coach Diego Simeone about playing in a number nine role, where Falcao played," he continued.
"But I am simply at his disposal and will play wherever he wants. Falcao was loved here but hopefully I can make sure his absence isn't felt."