Alvarez, 23, has only been part of Pep Guardiola’s first team squad since last summer but has impressed so much that the club are keen to extend his deal on improved terms.
The Argentina forward signed for City from River Plate in January 2022 but remained in his home country until the end of last season. He arrived in Manchester in the summer and has scored 10 goals in 33 appearances since making his debut in July.
Alvarez’s contract runs until 2027 but his deal is set to extend his stay by a year and increase his weekly wage to bring him more in line with the rest of City’s senior squad.
City have acted quickly to tie down another one of their star players. Almost all of Guardiola’s squad, which has won four of the last five Premier League titles, have contracts until at least 2025.
Ilkay Gundogan is out of contract at the end of the season and Kyle Walker‘s deal is set to run out until 2024. Sources close to City have denied reports that preliminary talks are underway to extend Walker’s contract.