Eddie Howe’s side shaded the first-half but were undone in the second after goals from Julian Alvarez and Antonie Griezzman saw their Spanish visitors clinch the Sela Cup.
For the Magpies, the defeat means they have gone an entire pre-season without a win, losing to Celtic, Arsenal, Team K-League and Atletico, and drawing with Tottenham Hotspur and Espanyol.
The Premier League campaigns gets underway next Saturday with an away trip to Aston Villa, who United pipped to Champions League qualification on goal difference last season.
Anthony Elanga made his St James’ Park debut as Eddie Howe, as expected, named 11 changes from the 2-2 draw against Espanyol that took place less than 24 hours later. Elanga lined up on the right side of the three-man attack with Harvey Barnes and Anthony Gordon through the middle.
Joelinton missed four first-half headers and the Magpies were made to pay for those missed chances in the 50th minute when an Atletico counter-attack saw Alex Baena and Julian Alvarez combine with the latter opening the scoring.
Atletico made 11 changes on the hour mark and within a couple of minutes doubled their advantage through Antoine Griezmann.
Our writerJordan Cronin was at St James’ Park - and here are his Newcastle United player ratings:
Made two excellent saves in either half. Could do little about the goals conceded. Say it quietly but Pope actually looked a lot more composed with the ball at his feet.
1. Nick Pope - 7
Made two excellent saves in either half. Could do little about the goals conceded. Say it quietly but Pope actually looked a lot more composed with the ball at his feet. | Getty Images
A crucial clearance at the back post to prevent Atletico from going 1-0 up in the 27th minute. Saw a low free-kick saved by Jan Oblak. Again looked sharp.
2. Kieran Trippier - 7
A crucial clearance at the back post to prevent Atletico from going 1-0 up in the 27th minute. Saw a low free-kick saved by Jan Oblak. Again looked sharp. | Getty Images
Got physical with the Atletico Madrid attackers. Bodied a few to the ground. Aggressive.
3. Jamaal Lascelles - 7
Got physical with the Atletico Madrid attackers. Bodied a few to the ground. Aggressive. | Getty Images
Showed no ill effects after missing the two games in South Korea with a thigh issue. Read the game well. Well positioned make some important blocks and interceptions.
4. Sven Botman - 7
Showed no ill effects after missing the two games in South Korea with a thigh issue. Read the game well. Well positioned make some important blocks and interceptions. | Getty Images