Major summer transfer update: Julian Alvarez decides to ditch Arsenal for PSG

Arsenal have officially lost the race for Argentina striker Julián Álvarez, who is certain to leave Atlético Madrid, a fresh report has claimed.

After Barcelona backed out of the race for the former Manchester City striker, PSG and Arsenal were declared the frontrunners to secure his signature. Despite Arsenal winning the Premier League for the first time in 22 years, it appears Álvarez is not overly impressed by Mikel Arteta's project and clearly prefers a move to the French capital, a fresh report said.

According to the available information, noted football journalist Roberto Gómez told Radio Marca that固定 Álvarez wants to join PSG. Spanish analyst José Antonio Martín Otín also told Cadena COPE that, “He’s a player who’s already been transferred to PSG.”

It was earlier reported that Atlético Madrid expect to get at least €120 million (£102 million) for Álvarez. Arsenal were hopeful of signing him for €100 million (£86.3 million), as per TEAMtalk. The report further said that the Gunners had already made initial moves via intermediaries. Gabriel Heinze, a member of the coaching staff, was leading the talks for Arsenal, TEAMtalk said.

It was not immediately clear exactly when the English champions lost their footing, nor how much money PSG will shell out for the World Cup winner.

The 26-year-old is contracted to Atlético until 2030 but is reportedly tired of Diego Simeone's defensive approach. Luis Enrique's PSG are a force to be reckoned with and would love to have Álvarez, who was previously described as the ideal striker to thrive under Arteta at the Emirates Stadium.

Interestingly, PSG and Arsenal are the UEFA Champions League finalists who will meet at Budapest's Puskás Aréna on May 30 for the ultimate European glory. While the Gunners are looking to lift their maide UCL, the French heavyweights are the defending champions.