Simeone welcomes Los Blancos to the Estadio Metropolitano tomorrow with both sides already tasting defeat in LaLiga so far this season.
After cruising to a 4-0 home win over Osasuna in midweek, Simeone could stick with an unchanged starting XI against Jose Mourinho, despite the return to fitness of Alvarez.
The Argentinian has played a limited role so far in 2026/27, with no league starts, following the failure of his desired summer move to Barcelona.
Simeone has been consistent in his eagerness to recover the relationship, but he's expected to start on the bench, with Ademola Lookman highlighted as the dangerman by his manager.
"Julian will join us in the squad. We'll decide later whether he starts or comes on during the match.
"Lookman is a player with a profile we don't often have. He's the most dangerous player in 1v1 situations on the edge of the box. We need him whether he plays 60, 70, or however many minutes he plays.
"He's been very good for us since he arrived, and although his start to the season hasn't been what he'd like, we still need him."