According to Cadena SER, Manchester Coty made contact with Atletico Madrid to explore signing the Argentina international, but Álvarez rejected the idea of going back to England before City could even table a formal offer.
It marks the second Premier League door the 25-year-old has shut this summer, having already rebuffed interest from Arsenal.
Atlético's stance on the matter has not softened. Barcelona remain Álvarez's preferred destination, but the LaLiga champions have refused to sanction a sale to their domestic rivals at any price. Chief executive Miguel Ángel Gil Marín said this week: "As long as I am CEO of Atlético Madrid, Julián Álvarez will not be transferred to Barcelona."
The dispute has spilled into open conflict between the two clubs' hierarchies. Gil Marín branded comments made by Barcelona president Joan Laporta about the negotiation "repugnant and full of falsehoods," a remark that drew a sharp response from Barcelona vice-president Rafa Yuste, who said a "red line had been crossed" and that the words had caused him "outrage." The row escalated just a day after the pair clashed publicly in Monaco following the Champions League group-stage draw.
Away from the boardroom battle, Álvarez has had a difficult week on the training pitch. He missed two consecutive sessions at Atletico Madrid's Cerro del Espino training base, citing an unspecified illness, before returning to train alone in the gym on Friday. Manager Diego Simeone confirmed in his pre-match press conference that the forward would not be involved in Saturday's LaLiga fixture against Sevilla.
Cadena SER reports that contact between Álvarez and the club's medical staff has been constant throughout his absence, and that his gradual improvement was central to the decision to allow him back into the training ground. The World Cup winner had joined Atlético from Manchester City for an initial £82m in 2024 and has scored 49 goals in two seasons in Madrid, but his public desire to leave has strained his relationship with a section of the club's support.
Atlético had previously set a deadline of June 20 for any club wishing to trigger Álvarez's departure, stating in writing that an offer of at least €150m would be required. Barcelona's opening bid, reported to be worth more than €100m, remains on the table should Atlético's position change, though there is no indication that will happen before Monday's transfer deadline.