Atlético Madrid are growing more optimistic over the prospect of signing Manchester City forward Julián Álvarez as the key part of Diego Simeone's revamped lineup, sources told ESPN.

In the last hours, Atleti has made progress with representatives of the Argentina international and are confident that he is inclined to join the club, sources said, which would make negotiations with Man City easier.

The agreement for the player, whose signing is seen as a priority, would consist of five seasons and a fee that could reach 60 million ($65.5m) if Man City agree to head to the bargaining table. That's not a price tag Atleti are used to paying, but the club would be willing to make an exception in this instance for Simeone.

Man City's position remains that the door is open for any of their players to leave if the club's valuation is met, sources said.

Meanwhile, Álvarez's representatives are hesitant to openly discuss a potential move to Atleti and are waiting until after the Olympics to talk to City about their plans for the forward. However, one source said that Erling Haaland's status as City's first-choice striker complicates any guarantee for playing time the club could offer Álvarez.

Sources told ESPN that Álvarez wants to take the next step toward being a starter, which Atlético can guarantee under Simeone.

After the departures of Álvaro Morata and Memphis Depay, Atleti have been in negotiations with Villarreal for Alexander Sørloth, although they will need another forward to meet their needs.