The Sounders traded Josh Atencio to the Colorado Rapids in exchange for up to $1.6 million in general allocation money, the clubs announced Saturday. Seattle also retains a percentage of any future transfer fee if Atencio is traded or loaned elsewhere.

The U.S. international appeared in 111 matches, through all competitions, for the Sounders. He recorded two goals and two assists in 5,254 minutes played and made appearances in the FIFA men’s Club World Cup, Leagues Cup and U.S. Open Cup.

Atencio, 23, signed his initial first-team contract in 2020 after performing well with the Sounders Academy and now-MLS Next Pro team Tacoma Defiance. He signed a four-year deal in January 2024 and represented the country in the Paris Games.

“We want to sincerely thank Josh for his time with the Sounders organization,” Sounders general manager Craig Waibel said, in part, in a news release. “He’s been a dedicated professional and a great representative of our club. Part of our commitment to player development is ensuring that each individual has the right opportunity to maximize their potential. While we always strive to create those opportunities in Seattle, we also recognize that sometimes a fresh start can be the best path forward.”

Competition for MLS minutes have been steep for Atencio. Sounders coach Brian Schmetzer opened preseason camp transitioning the midfielder to the center back position. The Bellevue native was receptive to the change and likely would’ve been used during a congested schedule.

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But Waibel also signed South Korean international Kim Kee-hee. The center back played for Seattle during the 2018 and 2019 seasons, helping the Sounders win an MLS Cup trophy. He isn’t expected to arrive until later this month.

“Josh has been a great player to coach and an even better person to have in our locker room,” Schmetzer said, in part, in a news release. “While it’s always tough to see a Homegrown Player move on, we know this is a great opportunity for him to continue his growth. On behalf of the entire coaching staff, I want to thank Josh for his time with the Sounders and wish him all the best in this next chapter with Colorado.”

The Sounders will receive $650,000 in 2025 general allocation money and $650,000 in 2026. Colorado will pay an additional $300,000 if Atencio hits certain performance metrics.

Seattle opens its 2025 campaign Wednesday with a CONCACAF Champions Cup road match against Guatemala’s Antigua GFC. The MLS opener is Feb. 22 against Charlotte FC at Lumen Field.