Atletico Madrid are offering the Argentine striker a salary of around €10 million per year in an attempt to neutralise growing interest from Barcelona and keep their top scorer at the Metropolitano.
Alvarez, 26, has scored 17 goals and provided nine assists across 44 appearances in all competitions this season, including a goal in the Champions League semi-final first leg against Arsenal. He joined from Manchester City in 2024 and his current deal includes a €500 million release clause — a figure that makes any transfer contingent on direct negotiation between the clubs rather than any unilateral exit.
Transfer expert Matteo Moretto, speaking on La Pizarra de Quintana, confirmed that Atletico are pushing to finalise the extension once the season concludes, with the relationship between club and player described as excellent and the family settled happily in Madrid.
Barcelona have nonetheless identified Alvarez as their primary attacking target this summer — the long-term successor to Robert Lewandowski, who is expected to leave when his contract expires.
Sporting director Deco has ranked him as their highest priority above other positions. Barcelona president Joan Laporta is said to be prepared to lead direct negotiations himself from 1 July.
Atletico president Enrique Cerezo has repeatedly insisted the club have no intention of selling. Diego Simeone's public support for his compatriot has been emphatic.
Alvarez himself has tried to manage the noise without closing any doors.
"I try not to give too much importance to what people say, because the truth is that every week, new things appear."
Arsenal are also interested and could offer Champions League football, adding a further complication to Atletico's retention plans.
If the extension is signed before the window opens, Barcelona's pursuit effectively ends. If Alvarez delays, the possibility of a summer move remains alive — which is precisely why Atletico want this resolved quickly.