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.