Atletico Madrid AGREE to sell Julian Alvarez to Arsenal but striker says NO with Barcelona 'dream' move in mind

In a sensational twist to the summer transfer window, Atletico Madrid have opened the door for Alvarez to join Arsenal, according to Mundo Deportivo. The Spanish giants are now said to be willing to sanction a move to the Emirates Stadium, potentially involving a swap deal for Viktor Gyokeres, as Diego Simeone looks to resolve a situation that has become increasingly untenable at the Metropolitano.

However, the report adds that Alvarez is adamant that he will only leave the Spanish capital for Barcelona, a club he considers his "dream" destination. This stance comes after a summer of friction in which the former Manchester City man made his feelings known on the international stage.

While the player is desperate for a move to Catalonia, Atletico's hierarchy has been far more resistant to dealing with their domestic rivals. Consequently, Barca have reportedly parked their attempts to sign the forward after seeing a significant €100m (£86m) bid rejected by the Rojiblancos earlier in the window.

Atletico CEO Miguel Angel Gil Marin has remained publicly defiant regarding the striker's valuation, pointing to his astronomical €500m release clause as the only way out. "We don't want to transfer him," Gil Marin stated. "We didn't accept the €100m offer, nor will we accept one for €150m or €200m. I have no doubt that Atletico is the right place for Julian and that Julian is the centre forward for Atletico Madrid. We want to keep him."

The atmosphere at the Metropolitano has soured significantly as the transfer window enters its final stages. During Atletico’s 2-0 victory over Malaga in the opening fixture of 2026-27 La Liga, the absence of Alvarez sparked a crowd reaction that highlighted the growing rift. A section of the home supporters directed whistles and hostile chants toward the Argentine, who was omitted from the matchday squad entirely by Simeone.

Simeone addressed the situation after the game, refusing to hide from the tension. "I have great respect for our people," the manager stated. "We are open - as we always say - to specific possibilities. You know this after 15 years, I always say that until the window closes, I am open to anything that might happen. That doesn't mean I'm talking about any specific individual, is that clear?"

Officially, Alvarez was left out of the squad due to a lack of match fitness following his exploits with Argentina, where he reached the World Cup final. Simeone explained the omission, saying: "We don't believe Julian Alvarez is in the right condition to play or take part for tomorrow's game. Hopefully, over these next four days, he'll make further progress and we'll be closer to where we want him to be."

However, the timing of the omission alongside the reports of an agreement with Arsenal has raised eyebrows across Europe. Despite the manager's public optimism about building a strong squad, the reality is that the Argentine’s future remains the biggest cloud over the club. With the deadline looming, Atletico must decide whether to force the Arsenal move, give in to Barcelona's interest, or somehow reintegrate a player who has clearly set his heart on a future away from Madrid.