Manchester City and Atlético Madrid have agreed to a deal for striker Julián Álvarez, a source told ESPN.

The LaLiga side are set to pay up to 95 million ($104m) for the Argentina striker. Around 64m (75m) will be due up front with another 17m (20m) in performance-based add-ons.

It represents City's record departure and a huge profit on the 14m they paid for Álvarez's rights when he arrived from River Plate in January 2022.

Sources told ESPN that Álvarez has not yet agreed to personal terms with Atlético, but it is understood to be a formality.

City, according to a source, were reluctant to let the 24-year-old leave after he scored 36 goals in 103 games over two years and helped the club win the treble in 2023 and another Premier League title last season.

However, with Álvarez's prospects of replacing Erling Haaland as Pep Guardiola's first-choice striker slim and keen to find regular football elsewhere, City are satisfied they've negotiated a good deal for the 2022 World Cup winner.

City also signed Brazil winger Savinho in July but were expecting an otherwise quiet summer window.

However, with Álvarez set to leave, they will have to decide whether to find another understudy for Haaland. The Norway striker missed two months of last season because of injury, allowing Álvarez to make 54 appearances in all competitions.

Álvarez failed to appear in only two of City's 38 Premier League games, scoring 11 league goals.

Information from ESPN's Rodrigo Faez contributed to this report.