Arsenal have received permission to open transfer negotiations with Atletico Madrid over Julian Alvarez, according to a report relayed by The Standard from The Athletic. The development marks a significant shift from the Spanish club, who had previously refused to entertain any offers for their star forward.

Atletico Madrid soften their stance

Alvarez made his first appearance in Atletico Madrid colours this past weekend since publicly declaring his desire to leave the club — and was met with boos and whistles from his own supporters at the Metropolitano. That visible tension appears to have prompted a change in attitude from the club's hierarchy.

Atletico Madrid had rejected a £128 million bid from city rivals Real Madrid back in June, but are now reportedly prepared to discuss a sale at that same figure. Should Arsenal meet that valuation, Alvarez would become the club's record signing, surpassing the £100 million they paid for Declan Rice in 2023.

Barcelona preferred, but Catalans step aside

Despite Arsenal's pursuit, Alvarez's personal preference is said to be a move to Barcelona rather than a switch to north London. However, Atletico Madrid have no intention of selling to their La Liga rivals, which has led Barcelona to abandon their interest in the 26-year-old.

That leaves Alvarez facing a stark choice: remain at Atletico Madrid under manager Diego Simeone for another season, or accept a new challenge at the Emirates Stadium.

Jesus, Gyokeres, and the wider picture

FourFourTwo understands that Gabriel Jesus and Viktor Gyokeres have been discussed as potential makeweights in negotiations. Jesus is entering the final year of his Arsenal contract, while Gyokeres was named among the substitutes in Arsenal's opening Premier League fixture against former club Coventry City last Friday. Both players have been floated as options to reinforce Barcelona's attack at reduced cost.

Gyokeres has also been mentioned as a possible replacement for Alvarez within Atletico Madrid's own squad planning. Separately, Arsenal are exploring a loan move for academy graduate Ethan Nwaneri as manager Mikel Arteta seeks to build a squad capable of competing across all four competitions this season.

To help balance the books, the Gunners are also looking to sell Gabriel Martinelli to the Saudi Pro League for in excess of £50 million. Alvarez originally joined Atletico Madrid two years ago from Manchester City in a deal worth more than £80 million, signing a six-year contract that includes a release clause of €500 million. His current market value, according to Transfermarkt, stands at €120 million.

Arsenal's next fixture is away to Aston Villa as Premier League action resumes next weekend.