Arsenal have been handed a new update regarding their pursuit of Atletico Madrid and Argentina forward Julian Alvarez, as the transfer saga involving Barcelona continues to unfold.

Alvarez, who is currently preparing for the World Cup final against Spain with Argentina, remains Barcelona’s top target this summer. However, the LaLiga champions are facing significant challenges in finalising a deal.

Barcelona have already had at least one bid turned down, with Atletico Madrid refusing to sell to a direct rival. The Spanish champions have been informed that they must activate the €500 million (£431 million) release clause in Alvarez’s contract if they wish to bring him to Camp Nou.

In the latest development, Barcelona president Joan Laporta confirmed that a major offer had been submitted for the 24-year-old striker. However, he emphasised that the club would not wait indefinitely, suggesting that alternatives were being considered if a deal could not be completed before the end of July.

Laporta told SER: “We have made a very significant offer; if they are willing to accept it, fantastic, but it won’t be unlimited. We have to make a decision. Whether we maintain the offer or not depends on how these last two weeks of July unfold.”

He added: “The player has spoken out, and that’s why the issue remains open. It’s clear that the player wants a change of scenery, and we are ready to welcome him. We’ll see how it all unfolds.

“Deco is doing a great job. He’s brought in Adeyemi, whom we’ll sign next week. He’s working very efficiently and discreetly, as it should be done.

“Obviously, if the Julian deal falls through, we have alternatives.”

Atletico Madrid president Enrique Cerezo quickly responded, reinforcing the club’s determination to keep Alvarez at the Metropolitano. He stated: “Joan Laporta is a good friend, he’s a great president, and he knows very well, as do all of you, where Julian Alvarez will be playing next year.”

Arsenal’s interest in Alvarez dates back more than a year, with Mikel Arteta reportedly considering a renewed move for the World Cup winner if his proposed switch to Barcelona collapses.

However, Alvarez appears intent on joining Barcelona. Speaking to ESPN last month, the Argentine said: “I don’t think it’s the right moment to talk, but I also don’t want to hide. I try to be an honest person. I spoke with the people at Atletico who I needed to speak with. I think the best thing for everyone is a transfer. I want to fulfil my dream.”

Despite the player’s desire to move, Atletico Madrid’s chief executive Miguel Angel Gil has stated firmly that Alvarez will not be leaving this summer. He said: “My position is clear, the club’s position is clear. We’ve made it known to the player, his representatives, and the president of Barcelona.”

Gil continued: “I have absolutely no doubt that Atletico is the right place in the world for Julian, and that Julian is the perfect centre-forward for Atletico Madrid. We want to keep him.”

He also took aim at Laporta’s comments: “I recently heard the president say that the offer he made to Atletico Madrid wasn’t unlimited. My only response is that our answer is unlimited. We do NOT want to transfer him. We didn’t accept an offer of €100 million, and we won’t accept one of €150 million or even €200 million.”

The firm stance from Atletico means Arsenal and Barcelona may both have to look elsewhere as the summer transfer window approaches its final weeks.