Manchester City are set to lose their first major star of the summer.

Manchester City have agreed a transfer fee of up to €95m (£81.5m) with Atletico Madrid for the sale of Julian Alvarez.

The Argentinian, who is currently enjoying a summer break following his exploits at the Olympics, revealed last week that he was frustrated at his role in the second half of last season as he was left out for several high-profile games.

But with Erling Haaland in the squad, Alvarez has always played second fiddle and City have reluctantly allowed the forward to depart in a club-record deal. Atletico have agreed to pay an initial €75m (£64m) and a further €20M (£17m) in add-ons.

Alvarez played more games than any City player last season but often found those appearances coming from the bench in the second half of the campaign and grew frustrated. The 24-year-old has been linked with an exit all summer amid speculation of interest from Paris Saint-Germain, Arsenal and Chelsea, but Atletico’s pursuit was always strongest.

The offer from the Spanish side has been presented in the last 24 hours and while personal terms have not yet been agreed, a deal is expected to be wrapped up soon.

His sale will see City make a huge profit on the £14m they paid for the player in 2021, and in two full seasons at the club Alvarez has won two Premier League titles, the Champions League and FA Cup, as well as international success at the World Cup and Copa America.

Alvarez’s departure will spark speculation surrounding a possible replacement. The Blues’ stance all summer has been that they will only move into the market if there are major outgoings, something Alvarez’s exit certainly could constitute.

His imminent sale will leave City with one major striker in Haaland, although they do have the option of youngster Jaden Heskey, who played in pre-season.