The Gunners are expected to add firepower in the final weeks of the market, particularly with Leandro Trossard widely tipped to depart, and the Argentina international has re-emerged as a leading candidate.
According to Metro Sport, Arsenal are ready to resume their interest after their pursuit appeared to lose momentum in recent weeks. The north London club remain keen on Alvarez and are monitoring developments closely as they weigh up their options in attack.
Any move, however, is likely to depend on the striker signalling that he wants to leave Atletico Madrid. If that happens, Arsenal are prepared to investigate whether a deal can be completed and hope to persuade him to choose them over rival suitors.
Alvarez has been the subject of persistent transfer speculation throughout the off-season. Barcelona and Real Madrid have both explored the possibility of signing the forward during the current window, while several of Europe's elite clubs have also been impressed by his displays.
The Argentina international further enhanced his reputation by helping his country overcome Switzerland and book a place in the World Cup semi-finals.
Despite the growing interest, Atletico have repeatedly stated that the former Manchester City forward is not available for transfer. The Spanish club are reportedly only willing to entertain offers if his release clause is activated, making any potential move extremely difficult.
Reports suggest Alvarez believes the time is right for a fresh challenge, although Barcelona is understood to be his preferred destination.
