The 24-year-old player had his test with the big clubs in La Liga on Monday and has now signed a six-year deal that runs until June 2030.
Alvarez is reportedly going to Atletico in a deal worth €95m (£81.3m), which includes an initial €70m (£59.8m) fee plus €25m (£21.4m) in add-ons. This is a club-record sale for Man City, beating the £50m they got from Chelsea for Raheem Sterling in 2022.
The fact that Samu Omorodion's move to Chelsea fell through because of problems with his contract ended his hopes of getting to Stamford Bridge. This has not affected the big-money transfer of the Argentine player to Civitas Metropolitano.
Alvarez is leaving Manchester City after two successful years at the Etihad Stadium, where he scored 36 goals and set up 18 others in 103 games across all categories.
Before joining City, the flexible forward played for River Plate. While with City, he won two Premier Leagues, one Champions League, one FA Cup, one UEFA Super Cup, and one FIFA Club World Cup.
"Man City will always have a special place in my heart," said Alvarez.
Since then, Alvarez has said goodbye to Man City. He thanked everyone at the club and promised to "keep supporting the club wherever he may be."
The forward said this on Man City's website: "Today I say goodbye to this amazing club, with a lot of emotion." Thank you for two beautiful years. I've learned and grown a lot as a player and person during this time.
"I appreciate the trust and help you have shown the leaders and technical staff. Your guidance and lessons have helped me grow a lot.
"Thank you to my teammates for all the time we've spent together and all the hard work you've put into every practice session and game." I have learned a lot from all of you, and I will always remember you and be grateful for your company.
"I want to thank all of my fans from the bottom of my heart for their support and for making me feel welcome from the first day." Being a part of this family will always make me very happy.
"I will always have a soft spot for Manchester City." I hope you have a great future, and I will always support the club, no matter where I am.
La Arana wants to get into Atletico's plans for the first team.
“Everyone at Manchester City wishes Julian the best of luck with the next part of his career. It has been a pleasure to work with him,” said Txiki Begiristain, the head of football for Man City.
"From the moment he walked through the door here, he has had a great attitude. That's why he's much better now.
"The trophies he's won already show that he's a winner." I can't wait to see him grow even more over the course of the rest of his career.
Alvarez has chosen to move on to try to get regular first-team football for Atletico after having to play second fiddle to Erling Haaland at Man City.
The 2022 World Cup winner and two-time Copa America champion is Diego Simeone's third summer signing, following striker Alexander Sorloth and defender Robin Le Normand. Midfielder Conor Gallagher is almost ready to become their fourth new player.
Alvarez, also known as "La Arana" (The Spider), is now Atletico's second-most expensive player of all time, after Joao Felix, who joined from Benfica for a claimed £113 million in 2019.
Alvarez might play his first game for Atletico when they go to Villarreal on August 19 for the first La Liga game of the 2024–25 season.
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