Atletico Madrid have reached an £81.5 million agreement to sign Manchester City forward Julian Alvarez.
The deal includes an initial fee of £64.4 million (75 million euros) with an additional £17.1 million (20 million euros) in potential add-ons.
This transfer would set a new record for Manchester City, surpassing the £50 million fee Chelsea paid for Raheem Sterling in 2022.
Alvarez had previously indicated he would make a decision on his future after Argentina’s participation in the 2024 Olympic football tournament, where they were eliminated by hosts France last Friday.
Manchester City manager Pep Guardiola had expressed a strong desire to retain the 24-year-old, stating earlier in August that he “counted” on Alvarez for the upcoming season.
“I count on him, but he said in the news that decisions will be made all together,” said Guardiola.
However, as with previous departures such as Ilkay Gundogan, Riyad Mahrez, and Aymeric Laporte, Manchester City will not obstruct Alvarez’s move if he wishes to leave.
Atletico Madrid, who have also secured a deal to sign Chelsea midfielder Conor Gallagher, are still in negotiations with Alvarez regarding personal terms.
The Argentine forward, who joined City in 2022 from River Plate for £14.1 million, has scored 36 goals in 106 appearances for the club.
Alvarez won the Treble in his first season at the Etihad and also played a role in Argentina’s 2022 World Cup triumph in Qatar.