The Argentina international was one of the last players back for preseason training after reaching the 2026 FIFA World Cup final with Argentina in July.
Alvarez shocked the club during the tournament as he openly confirmed his desire to leave Madrid for Barcelona.
However, his request was firmly rejected by the LaLiga giants, with Atletico CEO Miguel Angel Gil Marin confirming he would not accept anything less than Alvarez's full €500M release clause to consider a sale - and Barca's interest has reduced since then.
Diego Simeone has looked to ease the tension surrounding his star striker by indicating his confidence over retaining him for the 2026/27 season despite the ongoing saga.
Cerezo has also stated his desire to keep the former Manchester City forward, and claimed fans will forgive him quicker than expected, if he performs when reinstated by Simeone.
The rumours have refused to go away, and with Atletico apparently unwilling to do business with Barca, a possible return to England could now develop with Arsenal showing fresh interest.
Mikel Arteta wanted to sign him before his 2024 switch to Madrid, but Alvarez opted for a move to Spain, and if the Gunners push for a deal - Atleti are now tracking Chelsea's Nicolas Jackson.
Jackson is not expected to be part of Xabi Alonso's plans, following his loan return from Bayern Munich, and Simeone could secure a cut-price agreement in the region of €25M.
Alvarez missed Atleti's 2-0 season opening win at home to Malaga in midweek - but he could feature against Villarreal on August 23 - if Simeone is convinced by his physical condition.