Atletico Madrid have agreed an £81.5m deal to sign Manchester City forward Julian Alvarez.
The fee is made up of an initial £64.4m (75m euros) with a further £17.1m (20m euros) in potential add-ons.
It would be a record sale for City, surpassing the £50m Chelsea paid for Raheem Sterling in 2022.
Alvarez said he would wait until Argentina's involvement in the 2024 Olympics football ended before making a decision on his future. The team were knocked out by hosts France last Friday.
City manager Pep Guardiola had been keen to keep the 24-year-old, and said earlier in August he "counted" on Alvarez before the start of the season.
"I count on him, but he said in the news that decisions will be made all together," said Guardiola.
But, as has been the case in the past with Ilkay Gundogan, Riyad Mahrez and Aymeric Laporte, City will not stand in the way of a player who wants to leave.
Atletico, who have also agreed a deal to sign Chelsea midfielder Conor Gallagher, are yet to agree personal terms with Alvarez.
The Argentine, who joined City in 2022 in a £14.1m deal from River Plate, has scored 36 goals in 106 appearances for Guardiola's side.
Alvarez won the Treble during his first season at the Etihad and the striker featured during Argentina's 2022 World Cup victory in Qatar midway through the campaign.
Analysis - Savinho could profit from Alvarez departure
Alvarez's status at Manchester City was going to be an issue from the moment he won the World Cup with Argentina in 2022.
Having arrived from River Plate as an unknown for a relatively small fee earlier in the year, Alvarez had made 20 City appearances - but fewer than half were as a starter.
The reality was he would never displace Erling Haaland as a number nine, so he would have to either compete with the likes of Phil Foden, Jack Grealish, Jeremy Doku, Bernardo Silva and others for a wide berth, or accept a role as back-up. And his enhanced status meant the latter option was not going to work in the long term.
Atletico are a huge club with Champions League aspirations and are an attractive alternative.
For City, it could mean a greater involvement for 20-year-old Brazilian new boy Savinho than was initially expected following his £30.8m arrival from Troyes.
It could also nudge Guardiola to reinforce a squad that is looking to win the Premier
League title for an unprecedented fifth successive season.
Football transfer rumours: Arsenal join Alvarez race; Man Utd and Chelsea battle for Real Madrid starlet
Arsenal join Atletico Madrid and PSG in battle for Man City forward Julian Alvarez
Man Utd and Chelsea eyeing 16-year-old Real Madrid defender
Plus updates on Dani Olmo, Conor Gallagher, Noussair Mazraoui and more
90min rounds up the latest transfer news, rumours and gossip circulating around the world...
Arsenal have joined Paris Saint-Germain and Atletico Madrid in the race to sign Manchester City forward Julian Alvarez but may need to make further sales to fund his arrival, with City demanding £80m in a deal with add-ons. (Mirror)
Manchester United and Chelsea have both been scouting 16-year-old Real Madrid defender Joan Martinez, but Los Blancos are calm as they don't believe the teenager wants to leave. (Diario AS)
RB Leipzig are preparing for the departure of star midfielder Dani Olmo, though there are still details to be negotiated with the German club wanting €60m from Barcelona for his signature. (Marca)
Ostracised Chelsea midfielder Conor Gallagher has held positive talks with Atletico as his €40m move to Spain gathers pace. (Fabrizio Romano)
Man Utd have scheduled a medical for incoming right-back Noussair Mazraoui and the Red Devils could even have the Morocco international available for the Community Shield next week. (Santi Aouna)
Mazraoui's arrival could see Aaron Wan-Bissaka leave Old Trafford. The former Crystal Palace defender has been linked with West Ham United but is now also being targeted by Serie A champions Inter. (Football Insider)
Bournemouth are adamant they will not sell striker Dominic Solanke for less than his £65m release clause as Tottenham Hotspur mull over a deal. (Mirror)
Liverpool are ready to duke it out with Newcastle United in the bidding for Palace defender Marc Guehi and also want to add left-back Julio Soler to their ranks as a long-term replacement for Andy Robertson. (Sun)
Atletico are ready to rival Real Madrid for Spain international Aymeric Laporte, who is keen to terminate his contract with Saudi Pro League side Al Nassr and return to Europe. (El Chriniguito)
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