Simeone, currently manager of Argentinian side Racing Club, coached Falcao at River Plate back in 2008 and he believes that Falcao will be well-loved by the fans in Madrid.
The 25-year-old will be hoping to endear himself to the home crowd by replicating his form at Porto last season, where he scored 39 goals in 42 appearances across all competitions.
Falcao joined the Spanish capital club for €40 million as a replacement for Sergio Aguero, who was signed by Manchester City earlier in the summer.
However, Simeone feels that Falcao will be a fan favourite although he is a different type of player from Aguero.
He told Marca: "Atletico fans will fall in love with him because of his capabilities,
"Kun is a much more static and explosive player, whereas Falcao is much more generous. He will be very well accepted in Madrid, I have no doubt about that."
Atletico brought in €65.5million worth of new players to bolster their squad this season, the most spent by a La Liga club.
Simeone also told Atletico fans that time must be given to this new-look squad to gel and not expect instant success.
He added: "As in every new team, the new players will take time, the players who left had some time to demonstrate the stability they were carrying.
"You have to give time for the players to take in what [coach] Gregorio Manzano wants."
Falcao is expected to make his debut for Los Rojiblancos against Valencia this Saturday at the Mestalla Stadium.