Alvarez was one of the major names in the summer transfer window, with Barcelona and Arsenal both pursuing the 26-year-old.
Nothing materialised, and Alvarez is expected to now spend the season focused on Atletico as he looks to establish himself as an increasingly important figure for both club and country.
That importance is likely to grow with Argentina entering a new era following Lionel Messi's international retirement.
Argentina have three games coming up, including Messi's final appearance for the national team against Benin. Alvarez is among the players expected to become increasingly important to Lionel Scaloni's side as they prepare for life beyond their iconic captain.
His club future, however, remains a more uncertain story to watch.
Barcelona sporting director Deco recently sought to cool speculation, insisting at the Portugal Football Summit in Lisbon that the situation is now in the past.
“Julian is in the past, we have to look ahead, and we are happy with the rest of the squad,” he said. “The idea has always been to bring in a mobile number nine capable of linking up with teammates, and Julian was one such player. It didn't work out, we made an offer. The club always maintained they wouldn't sell him, so we have to look for other solutions.”
But that stance does not necessarily mean the interest will not return. And Arsenal, meanwhile, remain ready to assess their own opportunity.
The Gunners know that returning to English football is not currently Alvarez's priority but they also believe they are one of the few clubs outside Barcelona with a realistic possibility of putting together a tempting deal - should Alvarez become open to the move.
They have the financial capacity to make a significant investment if the forward gives them encouragement.
Barcelona may have moved on for now and Arsenal will have to wait this out, but both clubs could have reason to revisit the situation next year.
Dean Jones has been a transfer news and football insider for Flashscore since 2025, as well as a journalist for leading UK newspapers and websites over the past 20 years, establishing himself as an authoritative and trusted voice in the industry.
