It is the fourth season in a row the teams will meet in the competition
For the fourth year in a row there will be a Madrid derby in the Champions League.
Real Madrid and Atletico Madrid were drawn together in Thursday's Champions League semi-final draw. The team met in the 2014 and 2016 finals, along with a quarter-final in 2015. Real Madrid won all three ties.
Last year, Real won their eleventh European Cup after a penalty shootout win over their local rivals, in Milan. Despite competing in three separate finals, Atletico have yet to win the title.
In the second semi-final, Monaco will face Juventus, with the first leg taking place in the Stade Louis II. Monaco have been the surprise package of the tournament this season, defeating Manchester City and Borussia Dortmund on the way to the semi-finals.
Semi-Final Draw: Real Madrid v Atletico Madrid. Monaco v Juventus #UCLdraw— Newstalk Sport (@NewstalkSport) April 21, 2017
Real Madrid and Monaco have home advantage in the first legs on the 2nd and 3rd of May, with the return legs taking place a week later. Times and venues for both games will be confirmed on Friday afternoon.
The Final will take place in Cardiff's Principality Stadium on June 3rd.