Atletico Madrid has agreed to an £81.5 million deal for Manchester City's Alvarez.

Atletico Madrid have reached an £81.5 million agreement to acquire Manchester City forward Julian Alvarez. The deal consists of an initial £64.4 million (€75 million), with an additional £17.1 million (€20 million) in potential add-ons. 

If completed, this transfer would set a new record for City, surpassing the £50 million Chelsea paid for Raheem Sterling in 2022. Alvarez had previously stated he would wait until Argentina's participation in the 2024 Olympics football tournament was concluded before deciding on his future. However, Argentina was recently eliminated by France. 

Manchester City manager Pep Guardiola had expressed his desire to retain the 24-year-old, stating earlier in August that he "counted" on Alvarez for the upcoming season. Despite this, City has shown a willingness to let players move on if they seek a new challenge, as seen with past departures like Ilkay Gundogan, Riyad Mahrez, and Aymeric Laporte.

Atletico Madrid, who have also agreed to sign Chelsea midfielder Conor Gallagher, are still negotiating personal terms with Alvarez. The Argentine, who joined City in 2022 for £14.1 million from River Plate, has scored 36 goals in 106 appearances. He contributed to City's Treble-winning season and was part of Argentina’s 2022 World Cup-winning squad.

Analysis: Savinho’s Opportunity

Alvarez's potential departure was anticipated following his World Cup success with Argentina in 2022. Initially arriving at City as a relatively unknown player for a modest fee, Alvarez found himself competing for a starting role and struggled to displace Erling Haaland as the primary striker. His elevated status made a backup role less viable long-term.

Atletico Madrid, with their Champions League ambitions, present an appealing option for Alvarez. For City, Alvarez’s exit might increase opportunities for 20-year-old Brazilian prospect Savinho, who joined from Troyes for £30.8 million. This change could also prompt Guardiola to seek additional reinforcements to maintain their pursuit of an unprecedented fifth consecutive Premier League title.