After finally ending their 22-year Premier League title drought, the Gunners are aiming to strengthen their squad in the summer ahead of the new campaign where they will seek to defend their title.
Alvarez, 26, has been linked with moves to Chelsea, Barcelona and now Arsenal who are seeking to add another world-class striker to their attack alongside Viktor Gyokeres.
This likely means both Gabriel Jesus and Kai Havertz depart the side as they step aside for the World Cup winner who said the rumours were "1000 per cent false" and "complete nonsense" earlier this month.
When asked about the transfer links once more this week, the Atletico star has brushed off them off once again as he sends a clear message about his future.
"I try not to waste energy on that and to focus on what we’re doing here at Atleti. I try not to give too much importance to what’s said in the media, because it often starts becoming a snowball of lies.
"I can’t keep going out to clarify or deny everything that comes out all the time."
Alvarez has not won a trophy in two seasons with Atletico but has 49 goals and 17 assists in 106 appearances. He is one of Europe’s best strikers and several clubs will be monitoring him heading into the transfer window.