Barcelona’s hopes of signing Julian Alvarez face a major setback, with Atletico Madrid refusing to sell the Argentina striker to a direct La Liga rival and a €500m release clause the only apparent route to a deal.

Alvarez’s future is entering a decisive phase as he prepares to return to training on 10 August. The 25-year-old has made clear his intention to leave Atletico Madrid and join Barcelona, but the Madrid club remains firmly opposed to allowing its star forward to move to the Catalan side.

According to Spanish newspaper Mundo Deportivo, Barcelona would have to pay Alvarez’s €500m release clause to complete the transfer. That figure is considered unrealistic, particularly after Atletico rejected an offer of €100m from Barcelona.

Atletico’s hierarchy recognises how difficult it would be to find a player of Alvarez’s quality in the transfer market. However, the club has not completely ruled out the possibility of finding a solution that would involve the striker moving abroad if he continues to insist on leaving.

Arsenal and Paris Saint-Germain have been identified as the most likely alternatives. Alvarez, though, is not expected to welcome that outcome because he does not want to leave Spain.

The Paris Saint-Germain option may already be close to disappearing. The French club has made significant progress in its attempt to sign Ferran Torres from Barcelona, making it less likely that it would also pursue Alvarez.

There is another reason why a move to Paris appears unlikely. Alvarez has previously told Paris Saint-Germain that he was not interested in joining them, having preferred Atletico Madrid when the two clubs were competing for his signature in the past.

Arsenal’s possible involvement could also be affected by developments at Real Madrid. The Premier League club is currently trying to sign Vinicius Junior, who has one year remaining on his contract at Real Madrid and has yet to agree a renewal.

A transfer for Vinicius Junior could cost more than €100m. That level of investment may make it less likely that Arsenal would also attempt to sign Alvarez.

With several potential routes becoming increasingly complicated, the countdown has begun to Alvarez’s return to training under Atletico manager Diego Simeone. Atletico are planning for him to remain at the club for another season, despite his desire to seek a new challenge.

Barcelona, meanwhile, do not want to make any rushed decisions. The club is continuing to leave room for further developments, with the striker’s eventual destination still dependent on how the coming weeks unfold.

For now, Atletico’s refusal to negotiate with Barcelona, the €500m release clause and the uncertainty surrounding alternative clubs have left Alvarez’s transfer situation at an impasse. His return to the Wanda Metropolitano training ground could provide the next significant indication of whether the dispute can be resolved or whether he will stay in Madrid for another season.