Arsenal and Paris Saint-Germain have reportedly been informed that Julian Alvarez is staying at Atletico Madrid for the January transfer window.

The Gunners tracked the 26-year-old closely for much of the summer, with his future at the Metropolitano Stadium uncertain.

Alvarez had made clear that Barcelona was his preferred destination, but Atletico stood firm and refused to sanction a move to their domestic rivals.

The Spanish giants were prepared to consider an offer from Arsenal and held talks in London with sporting director Andrea Berta as the Premier League club explored a deal.

Arsenal are believed to have remained in contact with the forward's representatives after the summer window closed, in the hope he would become more receptive to a move to the Premier League in the new year.

Alvarez apologises to Atletico fans

Although Alvarez is said to have grown more open to leaving, Atletico have made their position clear to all suitors: a move during the season is not an option, reports TEAMtalk.

The 2022 World Cup winner's recent resurgence has strengthened the club’s resolve to keep him, with the forward scoring against Stuttgart in the Champions League and Deportivo La Coruna in La Liga.

Alvarez has also apologised publicly to Atletico supporters over his remarks in the summer, a move that has helped reassure the club’s hierarchy.

Diego Simeone is understood to be behind Atletico’s firm stance, and welcomed the striker’s decision to speak directly to the fans.

What does Alvarez decision mean for Arsenal?

Atletico's reported stance is a major blow to Mikel Arteta's side, who must now explore alternative options as they look to strengthen their attack this winter.

Although sources at the club maintain that their admiration for the World Cup winner has not diminished, any move is now expected to be postponed until at least the end of the season.

The news could also affect Viktor Gyokeres, understood to have been keen to leave in the winter, with a summer departure for the Arsenal striker now appearing more likely.

PSG have also had to abandon their pursuit, with Luis Enrique reportedly unwilling to bring in a short-term replacement for the injured Khvicha Kvaratskhelia.