Atletico Madrid has agreed a deal with Manchester City worth an initial €75million (£64m) for Julian Alvarez, which will see him leave Manchester City just two-and-a-half years after his arrival from River Plate in 2022. 

The striker's hefty fee could rise as high as €95m (£81m) with performance-based add-ons. 

Although the English champions were keen to keep hold of the Argentina star, Alvarez is believed to be motivated by a move to increase his playing time. 

Diego Simeone has been one of Alvarez's most ardent admirers, but the 24-year-old had previously attracted interest from a host of top clubs, including Premier League rivals Chelsea. 

But Atletico's interest ramped up in recent days, with the club even mulling the possibility of including Joao Felix as a makeweight in a bid to get the transfer over the line. 

Mail Sport reported on Monday that Felix could have been offered to Pep Guardiola's side on loan with an option to buy.

City had previously held an interest in the Portuguese forward which pre-dates his loan spell at Chelsea in 2023. 

Although Alvarez ended the season as one of the City players with the highest number of minutes, the player was open about his desire to get involved in high-stakes clashes. 

'Last season, I was one of the players with the most minutes at City. But... in the end, you don't like being left out of important matches; you want to contribute,' he said.

'I'll take my time to think about what I want for myself. We will see after the Games. First, if I can, I will take a few days off. Then we will decide.'

Atletico's move for Alvarez is the latest move in what has been a busy week of business for the LaLiga side, with the club in the process of bringing Chelsea midfielder Conor Gallagher to the Spanish capital for £33.7m. 

Academy product Gallagher is set to sign a five-year contract with Atletico after being told by the west London side that he was unlikely to feature in new coach Enzo Maresca's plans for the upcoming season. 

Having secured Alvarez, Simeone's side could be more amenable to letting go another forward targeted by the Blues - youngster Samu Omorodion. 

The club have held talks with their Spanish counterparts over a potential £30m move as they bid to boost their attacking ranks. 

But Omorodion, who is currently taking part in the Olympics with Spain, is the subject of interest from across Europe. 

Chelsea could yet find themselves competing with teams including AC Milan, Roma, and Nottingham Forest in a bid to pin down the 20-year-old.