Speculation is mounting that the 26-year-old is looking to leave Atletico Madrid in the summer, with Barcelona and several Premier League clubs keens.
Alvarez has struggled in front of goal so far this season with just 13 goals and seven assists in his 38 games across all competitions.
Speaking ahead of Atletico’s LaLiga clash with Espanyol on Saturday, a bullish Simeone admitted he doesn’t know whether Alvarez will stay or not.
"I'm not inside his head," Simeone told reporters when quizzed on the speculation.
"I only see how he has played the last two matches, that he is returning to the level he always was and we need him in this way.
"Then, in his head I cannot be, but in what reflects in his work I am very happy with what he gives us."
