Arsenal and Paris Saint-Germain have been informed that Julian Alvarez will NOT be leaving Atletico Madrid in January, ending their hopes of signing the Argentine forward in the next transfer window, TEAMtalk can reveal.

The Gunners spent much of the summer monitoring Alvarez’s situation as uncertainty surrounded his future at the Metropolitano, with the former Manchester City star understood to be keen on a move away.

Alvarez made clear that he wanted to join Barcelona, but Atletico remained firm in their stance that they would not sanction a sale to their Catalan rivals.

The Spanish club were, however, willing to entertain a potential deal with Arsenal and held talks in London with Gunners chief Andrea Berta as the Premier League side explored the possibility of bringing the World Cup winner to England.

Arsenal maintained contact with Alvarez’s camp throughout the process and were aware that Barcelona remained his preferred destination. A move to North London was also a consideration, but the forward did not push for that switch during the summer window.

As we revealed previously, Arsenal have continued to keep in touch with Alvarez’s representatives since the window closed, hoping that he might become more open to a move elsewhere when January arrived.

That possibility appeared to offer renewed encouragement to Mikel Arteta’s side, with Alvarez understood to be increasingly receptive to the prospect of leaving Atletico for a different destination.

Arsenal were firmly positioned at the head of the queue should that change of heart translate into a transfer.

However, we understand that Atletico have now made their position clear to Arsenal, PSG and Alvarez himself: the forward will not be allowed to leave during the current season.

Arsenal to miss out on Alvarez after ‘apology’ made to Atletico

Atletico’s decision represents a significant setback for Arsenal, who had hoped to revive their pursuit when the January window opened. PSG have also been informed that a deal will not be possible, despite their longstanding interest in the Argentine.

Alvarez’s recent return to form has helped reinforce Atletico’s determination to retain him.

The 26-year-old is back in the first-team fold under Diego Simeone and found the net against Stuttgart in the Champions League and Deportivo La Coruna in LaLiga at the weekend.

His recent performances have been accompanied by a public apology to Atletico’s supporters, a gesture that has further reassured the club that the situation is moving in the right direction.

Simeone has been a driving force behind Atletico’s determination to keep Alvarez and has welcomed the forward’s decision to address the fans.

“I really appreciate his apology. Doing so is not easy, but when someone speaks from the heart, from pure emotion, I value it immensely because he is a humble, hardworking player and person,” Simeone said.

“He cares deeply about his teammates and I am grateful for his apology because it puts him right back where he deserves to be and where he belongs.

“It is not for me to judge whether what he did was right or wrong. Life unfolds, situations happen, and so be it.”

Alvarez’s return to the fold, combined with Simeone’s backing and Atletico’s firm transfer stance, has effectively ended hopes of a January departure.

Julian Alvarez twist has impact on Viktor Gyokeres

For Arsenal, that means their search for attacking reinforcements may have to take a different direction.

The Gunners have retained an interest in Alvarez, with club sources insisting that their admiration for the forward remains, but a move will have to wait unless Atletico’s position changes.

It also has implications for Viktor Gyokeres. Any potential departure for the Arsenal striker would now appear more likely to be considered in the summer, with the club unable to pursue Alvarez.

PSG, meanwhile, have also been forced to accept that Alvarez will not be available during the winter window.

The French champions have long remained interested in the Argentine, but sources at the club insist that Khvicha Kvaratskhelia’s season-ending injury was never going to trigger an immediate move for Alvarez.

Luis Enrique is understood to be unwilling to sign a player simply to provide a temporary replacement for the Georgian, meaning PSG’s position on the forward was not expected to change even with Kvaratskhelia sidelined.