Porto have announced they have reached an agreement to sell Felipe to Atletico Madrid in a deal worth £17.67m (€20m).
The 30-year-old, who joined Porto from Brazilian side Corinthians in 2016 and made 142 appearances for the club, will add experience to an Atletico side who have recently lost Diego Godin, Juanfran and Lucas Hernandez.
Antoine Griezmann looks set to also leave the club in the coming weeks after announcing his intentions to move on earlier this month.
Felipe won the Primeira Liga with Porto last season, along with the Portuguese Super Cup, but he was unable to inspire his team to the league title this year, with Porto just missing out after finishing two points behind eventual winners Benfica.
He confirmed his exit on Monday with a message on his Instagram page.
Felipe said: "It was three years of living intensely blue and white with a new family that I built, and that will be remembered for the rest of my life!
"I just have to thank all the staff of the club, the board, the president, the coaches and team-mates with whom I lived in this period."
Felipe becomes the second Brazilian defender to leave Porto for Madrid this summer, following Eder Militao's move to Atletico's rivals Real, which was agreed in March.