(Football news) Speculation over the future of the 24-year-old has been rife in recent weeks amid allegations that the Argentine is keen to seek pastures new in search of regular first-team football.

Alvarez joined Manchester City in the summer of 2022 for just £14m after starring for boyhood club River Plate at the beginning of his career, and he has since proved to be an invaluable first-team asset under manager Pep Guardiola.

The versatile forward has scored 36 goals and registered 18 assists in 103 appearances for the Citizens across all competitions, contributing with 19 goals and 13 assists in 54 games last season, and he has already won six trophies with the club, including two Premier League titles and one Champions League.

However, Alvarez has predominantly had to play second fiddle to first-choice striker Erling Haaland, either watching on as a substitute or playing behind the Norwegian in a deeper attacking role.

Alvarez set to complete blockbuster transfer to Atletico Madrid

Alvarez still has four years remaining on his contract at the Etihad Stadium, but the forward is keen to play regularly and now appears to be edging closer to leaving the club permanently.

Manchester City have agreed a deal with La Liga outfit Atletico Madrid for Alvarez worth up to €95m (£81.5m). Both clubs are said to have been in negotiations on Monday over the final price and payment structure of a deal and an agreement has now been reached with all parties.

The report adds that subject to personal terms being finalised, Alvarez will finalise his move to Spain in what will be a club-record sale for Manchester City, eclipsing the £50m that they received from Chelsea for Raheem Sterling in 2022.

Alvarez in, Felix out at Atletico?

Alvarez is expected to become Diego Simeone’s third signing of the summer transfer window following the arrivals of centre-back Robin Le Normand from Real Sociedad and striker Alexander Sorloth from Villarreal.

The Spanish club, who finished fourth in La Liga last season, are also closing in on the signing of Chelsea midfielder Conor Gallagher, who has given the green light to move to Estadio Civitas Metropolitano after a £34m fee was agreed between both clubs.

Atletico’s addition of Alvarez raises further doubts over the future of fellow attacker Joao Felix, who spent last season on loan at Barcelona and is thought to have developed a strained relationship with Simeone.

Felix was allegedly offered to Manchester City in negotiations for Alvarez, but it remains unknown as to whether the Citizens hold an interest in the Portugal international.

Guardiola has made just the one signing so far this summer, with Brazilian winger Savio joining from Troyes after a successful year on loan at Girona, but the sale of Alvarez is set to see Manchester City delve into the transfer market for a replacement.

Also read: Manchester United player is demanding an multi million pay-off while leaving