The attacker is not happy at the Etihad Stadium club, as he is second fiddle to Erling Haaland. Per The Mail and other sources, he is closing in on a move to Spanish giants Atletico Madrid.
The capital club are set to secure the signature of Alvarez for a mega fee.
While they had offered Joao Felix as a makeweight in the deal, such an offer has been rejected.
Instead, they are set to pay a full cash sum that is worth around £70 million.
Alvarez is on holiday after his exploits for Argentina over the summer, but will soon be traveling to Madrid.