PSG have backed away from their pursuit of Julián Álvarez, with Manchester City’s €80-90m asking price proving too steep for the French champions to swallow – and the immediate consequence is that Atlético Madrid are now the clear frontrunners to land the Argentine this summer. According to Mundo Deportivo, PSG have gone from leading the chase to quietly shelving it, a shift that reshapes one of the biggest transfer storylines heading into the 2026 fichajes window.
PSG Balk at Manchester City’s Asking Price
PSG’s interest in Álvarez was serious enough that the club reportedly tabled a structured proposal worth around €120m plus two players – a figure revealed by Iñaki Villalón on El Chiringuito and rejected outright by Atlético. There were even reports of negotiations being anchored closer to €150m before PSG’s position changed. That tells you just how aggressively they were pursuing this before the mood shifted.
The sticking point is City’s valuation. With Álvarez contracted until 2028, City have no urgency to sell and will not budge below that €80-90m threshold – and PSG, despite reportedly offering the player a salary in the region of €22m net per season (with variables pushing it toward €25m), have ultimately decided the overall cost of the operation is too high. Given their recent Champions League spending and broader financial commitments, that’s a calculated retreat rather than a loss of interest in the player himself. PSG’s pivot toward other attacking targets this summer underlines just how firmly they’ve moved on.
Atlético Madrid Emerge as Clear Frontrunners for Julián Álvarez
PSG’s exit hands Diego Simeone’s side a significant advantage. The player’s camp has reportedly signalled to the Metropolitano hierarchy that Atlético is Álvarez’s preferred destination – the Spanish lifestyle, the project, and crucially, the guarantee of playing as a pure number nine all factor in. At a club where he was the undisputed attacking focal point last season, that promise carries real weight.
Atlético are now working on a renewal offer that would roughly double his current wages to around €10m net per year – nowhere near what PSG dangled, but paired with the sporting promise of being Simeone’s main man, it’s a compelling package. Whether City’s asking price remains the obstacle it has been for everyone else is the key question, with reports suggesting Atlético are exploring creative payment structures to bridge the gap. For more on how Barcelona have also been circling – and why PSG’s withdrawal matters to their own striker search – see our piece on Barcelona’s hunt for a centre-forward alternative.
Julián Álvarez Seeking a Starting Role After City Frustration
The underlying motivation here hasn’t changed. Álvarez forced his way out of Manchester City in 2024 precisely because playing second fiddle to Erling Haaland wasn’t the plan – and at Atlético, under Simeone, he got exactly the undisputed starring role he wanted. The idea of returning to that dynamic, at a club now firmly back in the conversation among Spain’s elite, makes this more than just a convenient option.
Barcelona remain active too, with a proposal reportedly close to €90m plus variables in preparation, and Arsenal are monitoring from a distance. But PSG’s retreat has meaningfully narrowed the field.
Where Does the Julián Álvarez Transfer Stand Now?
The current picture: PSG are out, Atlético are leading, City are holding firm on their valuation, and a key meeting between Álvarez’s entourage and Atlético’s sporting directors is expected in the coming weeks. Whether Barcelona formalise their offer before that meeting could yet complicate things. The next month will determine whether this becomes one of the defining deals of the fichajes 2026 window – or whether City’s price tag keeps everyone at arm’s length.
