The Argentina international has belatedly returned for preseason training in Madrid after a run to the final of the 2026 FIFA World Cup in July.
Alvarez shocked the club during the tournament as he openly confirmed his desire to leave Madrid for Barcelona this summer.
Atletico CEO Miguel Angel Gil Marin responded swiftly by confirming he will not accept anything less than Alvarez's full €500M release clause to consider a sale and Barca's interest has reduced since then.
La Blaugrana are still monitoring the former Manchester City attacker and Ferran Torres' impending move to PSG could allow the defending LaLiga champions to make a transfer offer worth consideration for Atletico.
Simeone has previously stated his readiness to work with Alvarez once again and hinted at the case of Antoine Griezmann's struggles at Barca as an example for his No.9 to keep in mind.
As per reports from Marca, Alvarez rejoined Simeone's squad for a full session in front of an expectant media contingent, with the 26-year-old deployed as lone striker in a training game, ahead of Aleti's final preseason match in Marseille on August 14th.