In the energy transition, multi-energy systems are crucial to reduce the temporal, spatial and functional mismatch between sustainable energy supply and demand. Technologies as power-to-heat (PtH) allow flexible and effective utilisation of available surplus green electricity when integrated with seasonal heat storage options. However, insights and methods for integration of PtH and seasonal heat storage in multi-energy systems are lacking. Therefore, in this study, we developed methods for improved integration and control of a high temperature aquifer thermal energy storage (HT-ATES) system within a decentralized multi-energy system. To this end, we expanded and integrated a multi-energy system model with a numerical hydro-thermal model to dynamically simulate the functioning of several HT-ATES system designs for a case study of a neighbourhood of 2000 houses. Results show that the integration of HT-ATES with PtH allows 100% provision of the yearly heat demand, with a maximum 25% smaller heat pump than without HT-ATES. Success of the system is partly caused by the developed mode of operation whereby the heat pump lowers the threshold temperature of the HT-ATES, as this increases HT-ATES performance and decreases the overall costs of heat production. Overall, this study shows that the integration of HT-ATES in a multi-energy system is suitable to match annual heat demand and supply, and to increase local sustainable energy use.