- The striker, 24, struggled to cement his place in the City side last season
- Alvarez has previously stated that he is keen to play more high-stakes matches
- Chelsea - who had an interest in 24-year-old - could now move for Atletico star
Atletico Madrid has agreed a deal with Manchester City worth an initial €75million (£64m) for Julian Alvarez, which will see him leave Manchester City just two-and-a-half years after his arrival from River Plate in 2022.
The striker's hefty fee could rise as high as €95m (£81m) with performance-based add-ons.
Although the English champions were keen to keep hold of the Argentina star, Alvarez is believed to be motivated by a move to increase his playing time.
Diego Simeone has been one of Alvarez's most ardent admirers, but the 24-year-old had previously attracted interest from a host of top clubs, including Premier League rivals Chelsea.
But Atletico's interest ramped up in recent days, with the club even mulling the possibility of including Joao Felix as a makeweight in a bid to get the transfer over the line.
Julian Alvarez is preparing to leave Manchester City for Atletico Madrid on a permanent basis
The 24-year-old has previously discussed his desire to play more key matches - ahead of star striker Erling Haaland (right)
Diego Simeone has ramped up his interest in his compatriot over recent days after an earlier bid for Alvarez this summer
Mail Sport reported on Monday that Felix could have been offered to Pep Guardiola's side on loan with an option to buy.
City had previously held an interest in the Portuguese forward which pre-dates his loan spell at Chelsea in 2023.
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Although Alvarez ended the season as one of the City players with the highest number of minutes, the player was open about his desire to get involved in high-stakes clashes.
'Last season, I was one of the players with the most minutes at City. But... in the end, you don't like being left out of important matches; you want to contribute,' he said.
'I'll take my time to think about what I want for myself. We will see after the Games. First, if I can, I will take a few days off. Then we will decide.'
Atletico's move for Alvarez is the latest move in what has been a busy week of business for the LaLiga side, with the club in the process of bringing Chelsea midfielder Conor Gallagher to the Spanish capital for £33.7m.
Academy product Gallagher is set to sign a five-year contract with Atletico after being told by the west London side that he was unlikely to feature in new coach Enzo Maresca's plans for the upcoming season.
Conor Gallagher is another Premier League star in the process of making the move to Madrid
The Chelsea academy product was informed he was not in the plans of coach Enzo Maresca
Alvarez's arrival could clear the way for Samu Omorodion's exit, with Chelsea interested
How can Atletico Madrid afford their big-spending summer?
In making Julian Alvarez Manchester City's record sale, the Spanish giants have completed yet another piece of expensive business in what has been a bustling summer.
As well as Conor Gallagher set to join the club in a deal worth £33.7m, Atletico have spent a reported £56.6m on bringing Robin Le Normand and Alexander Sorloth to Spain's capital.
With just £18m coming in over the transfer window courtesy of offloading Alvaro Morata and Caglar Soyuncu to AC Milan and Fenerbahce, it appears at first glance like the club's eyes are bigger than their stomachs.
But during last season's previous windows, Atletico netted a much healthier £88m with the sales of players including Renan Lodi, Yannick Carrasco, and Matheus Cunha.
A comparatively minimal £46.3m was spent on bringing players like Antoine Griezmann and Arthur Vermeeren to the Metropolitano.
Atletico was also ranked the 15th highest revenue generating club in 2022-23 by Deloitte, netting a staggering £312m ahead of clubs including Newcastle, West Ham, and Napoli.
For finishing fourth in LaLiga last season, the club will also receive a punchy revenue share of the league's TV rights estimated by Mundo Deportivo to be worth £91m.
Add to that the £9.1m earned from reaching the Champions League quarter-finals, and Atletico looks to be more than capable of pulling off a blockbuster summer spend.
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Having secured Alvarez, Simeone's side could be more amenable to letting go another forward targeted by the Blues - youngster Samu Omorodion.
The club have held talks with their Spanish counterparts over a potential £30m move as they bid to boost their attacking ranks.
But Omorodion, who is currently taking part in the Olympics with Spain, is the subject of interest from across Europe.
Chelsea could yet find themselves competing with teams including AC Milan, Roma, and Nottingham Forest in a bid to pin down the 20-year-old.
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