Arsenal open £128m talks for Julian Alvarez as Atletico Madrid finally agree to negotiate

Arsenal have been given the green light to open negotiations with Atletico Madrid over a £128m move for Julian Alvarez, according to a report from The Athletic relayed by The Standard. The development marks a significant shift from Atletico, who rejected an identical bid from Real Madrid as recently as June.

The 26-year-old Argentine was booed and whistled by Atletico supporters on Sunday night at the Metropolitano — his first appearance in Rojiblancos colours since publicly declaring his desire to leave the club. The hostile reception appears to have accelerated a change in stance from Diego Simeone’s employers, who had previously considered Alvarez untouchable.

Should the deal go through at the reported figure, Alvarez would become Arsenal’s record signing, surpassing the £100m the Premier League champions spent on Declan Rice in 2023. To help balance the books, Arsenal are also reportedly looking to sell Gabriel Martinelli to the Saudi Pro League for upwards of £50m in the coming days.

Despite the progress, Alvarez’s preferred destination remains Barcelona rather than north London. However, Atletico have made clear they will not sell to their La Liga rivals, effectively forcing the Catalans to abandon their pursuit of the forward. That leaves Alvarez with a stark choice: stay at Atletico for another season under Simeone or make the move to the Emirates Stadium.

FourFourTwo understands that both Gabriel Jesus and Viktor Gyokeres have been discussed as potential makeweights in a broader arrangement involving Barcelona. Jesus is entering the final year of his Arsenal contract, while Gyokeres — linked with a move away from the club — was left on the bench during Arsenal’s opening Premier League fixture against Coventry City. Both have been floated as cut-price options to bolster Barcelona’s attack, with Gyokeres also mentioned as a possible replacement for Alvarez at Atletico.

Barcelona, meanwhile, are working to offload academy graduates Alejandro Balde, Marc Casado, and Hector Fort as they manage their own financial constraints.

Elsewhere in Arsenal’s squad planning, manager Mikel Arteta is looking to loan out academy graduate Ethan Nwaneri as he finalises a group capable of competing across all four competitions this season.

Alvarez joined Atletico Madrid two years ago from Manchester City in a deal worth over £80m, signing a six-year contract. During his two seasons in English football, he won the Premier League twice and the Champions League, adding a FIFA World Cup with Argentina in Qatar to his collection.