The agent of Ricky Alvarez says he is free to sign for any club.
Alvarez has been allowed to become a free agent by Sunderland and Inter Milan.
Marcelo Simonian told Telelombardia: "It is not true that FIFA has blocked the transfer of my client to San Lorenzo.
"Alvarez can sign up for any clubs, he is not forced to stay in Europe."
The Argentine spent last season on-loan with Sunderland.