The Argentina striker is being linked with Barcelona as a potential successor for veteran centre-forward Robert Lewandowski.
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However, Simeone insists: "I don't interfere with contracts, but I can see that he enjoys being here.
"The club knows what's best for the club. I can see that Julián is fully committed."
Meanwhile, Alvarez's agent Fernando Hidalgo also stated: "Nothing that's being written is true. It's pure speculation."