Manchester City manager Pep Guardiola has confirmed that Julian Alvarez will complete a permanent transfer to Atletico Madrid this summer.

The 24-year-old joined Man City in the summer of 2022 for just £14m after establishing himself as one of South America's brightest prospects at the beginning of his career with boyhood club River Plate.

Alvarez has proven to be an invaluable first-team asset and has played important roles in the Citizens' recent success, winning a total of six trophies with the club, including two Premier League titles and one Champions League.

The Argentina international, a World Cup and Copa America champion with his country, has scored 36 goals and registered 18 assists in 103 appearances for Man City across all competitions, contributing with 19 goals and 13 assists in 54 matches last season.

However, Alvarez has predominantly had to play second fiddle to first-choice striker Erling Haaland, and has been forced to either play behind the Norwegian in a deeper attacking role or watch on as a substitute.

Alvarez on verge of completing €95m Atletico move

Earlier this summer, Alvarez allegedly informed Man City of his desire to leave the club after rejected a contract extension at the end of last season.

Atletico Madrid have since come forward and have reached an agreement with the Citizens to sign Alvarez in a deal worth up to €95m (£81.5m) - a club-record sale for the Premier League champions.

Journalist Fabrizio Romano claims that the forward is due to undergo medical tests next Monday before putting pen to paper on a five-year contract with the La Liga giants.

Alvarez has recently concluded his international spell with Argentina at the Paris 2024 Olympics, but he will not be returning to Man City as Guardiola has confirmed that the forward has decided to join Diego Simeone's Atletico.

Speaking about Alvarez at a press conference on Friday ahead of Man City's Community Shield clash with Manchester United, Guardiola said: "First of all I want to say my gratitude for Julian, we won everything, his contribution has been massive.

"He was incredibly loved by the team for his behaviour but if he wants to leave, a new challenge - Atletico is a top club - then if you want to leave it's OK. We wish him the best. I learned a lot from him, hopefully he can find what he was looking for."

Guardiola suggests Alvarez will be 'happier' at Atletico

Asked specifically about why Alvarez wants to leave Man City, Guardiola added: "I don't know. I know he wanted a new challenge. He felt or feels that is what he has to do.

"I understand in certain moments, important moments, maybe he thought he was going to play. I respect that a lot. The decisions of the players, I said many times, I am a part of the club but the club has the final decision.

"A contract can be broken, if you are not happy why should you be here? When you believe happiness is around another corner, you have to go there to take a look.

"He believes his period here is over and okay. Both clubs are in agreement."

Guardiola was also asked if the departure of Alvarez will force Man City to sign a replacement, but he briefly replied: "I don't know yet."

Man City have made just the one signing so far this summer, recruiting Brazilian winger Savio from sister club Troyes for an initial £21m following a successful loan spell at Girona last season.