Porto have announced they agreed a €20 million fee for Felipe with Atletico Madrid following the defender's farewell message to fans on Monday.
The 30-year-old centre-back joined Porto from Corinthians in 2016 and swiftly established himself as a key player, featuring 93 times in the Primeira Liga in his three years.
A Brazil international, Felipe has been linked with a move away from the club for the last few months.
He has been widely linked with a move to Atletico as Diego Godin's replacement, with the Uruguayan's exit already confirmed.