The transfer, which is set to be a record sale for the Premier League club, is subject to the finalisation of personal terms.
The Athletic reported on Monday that both clubs were negotiating the final details of the fee and payment structure. This move will see the 24-year-old forward end his two-and-a-half-year tenure at Manchester City this summer.
Julian Alvarez joined Manchester City from River Plate in January 2022 for a fee of €17 million (£14 million). He extended his contract with the Premier League champions in March last year, committing his future to the club until 2028.
This summer, Alvarez will become Atletico’s third signing, following the arrivals of Robin Le Normand from Real Sociedad and Alexander Sorloth from Villarreal.
The Spanish club also remains keen on Chelsea midfielder Conor Gallagher, who has turned down two new contract offers from his current club in recent months.
During the previous season, Alvarez made 54 appearances across all competitions for Manchester City, scoring 19 goals and providing 13 assists.
His contributions were vital in helping Pep Guardiola’s side achieve a historic treble, winning the Premier League, the Champions League, and the FA Cup in the 2022-23 season. City became only the second English team in history to secure this remarkable feat.
Internationally, Alvarez played a significant role in Argentina’s victory at the 2022 World Cup in Qatar. He has also won the Copa America twice with his national team and has been capped 36 times. Additionally, Alvarez represented Argentina at the Paris Olympics, where he provided two assists, helping the team reach the quarter-finals before being eliminated by hosts France.