Arsenal are edging closer to signing Julian Alvarez from Atletico Madrid, with reports suggesting a club-level agreement has been reached for a deal worth €150 million plus the transfer of Viktor Gyokeres to Spain.

According to Spanish outlet AS, relayed by Sport Witness, an "agreement between the clubs exists" for the Argentine World Cup winner — though a personal agreement with Alvarez himself remains the outstanding hurdle.

Alvarez's relationship with Atletico fans has soured

The 25-year-old has found himself increasingly at odds with the Atletico Madrid faithful after publicly describing it as his "dream" to leave the club. He was met with boos and whistles at the Metropolitano, and AS reports that Alvarez is now "starting to see" Arsenal as his only realistic exit route this summer.

Barcelona have also expressed interest in the forward, but Atletico are unwilling to negotiate with a domestic rival. With Alvarez's release clause reportedly set at over £400 million, any move requires Atletico's cooperation — something the Rojiblancos have refused to offer Barcelona.

Gyokeres heading the other way

Arsenal had initially been quoted a fee of £128 million for Alvarez, but the reported structure of the deal now sees Gyokeres move to Atletico Madrid as part of the arrangement, with the overall value set at €150 million.

Gyokeres was Mikel Arteta's leading scorer across all competitions last season as Arsenal won the Premier League and reached the UEFA Champions League final. However, the Swedish striker drew criticism for his overall contribution and did not come off the bench in Arsenal's opening league fixture against Coventry City.

Arteta spoke directly with Alvarez earlier in the summer in an attempt to persuade the former Manchester City forward to make the move to North London. Despite that personal appeal, Alvarez's preference has remained a switch to Barcelona.

Martinelli sale and the bigger picture

Arsenal are also reportedly closing in on the sale of Gabriel Martinelli to Al Hilal, which would further open the door for Alvarez — a player capable of operating either as a centre-forward or on the left flank.

Transfermarkt values Alvarez at €120 million. Arsenal next face Aston Villa in Premier League action, with the transfer window set to close next week.