The Argentina international finds himself back in the reckoning for match action in Bilbao after falling to force a move away from the club before the transfer window closed on September 1st.
Alvarez shocked Simeone and club officials during the 2026 FIFA World Cup after declaring his intention to leave Madrid this summer.
Los Rojblancos were consistent in their position over not selling Alvarez to LaLiga rivals Barcelona following a furious war of words between the two clubs with Atleti claiming they are the sole victim in the transfer saga.
Simeone now wants to draw a line under the saga and Alvarez could be used late on at the Estadio San Mames with Atleti unbeaten so far this season.
The former Manchester City striker did play a cameo role off the bench in the 2-2 draw at home to Villarreal last month - but he was booed by large sections of the Atleti fans - as he faces an uphill battle to win them back.