The talented 23-year-old was reported to be one of the players identified by manager Arsene Wenger to plug the gap left by the possible departures of Cesc Fabregas and Samir Nasri, who are both being heavily linked with moves away from Emirates Stadium.
"Velez Sarsfield Athletic Club announces that it has reached an agreement with the authorities of FC Inter Milan for the transfer of our player Ricardo Alvarez," read a statement on Velez's website.
Alvarez’s club and Inter are believed to have settled on a deal worth £10.6 million with another payment of just under £1 million due once the player makes 80 first-team appearances at the San Siro.
New Inter coach Gian Piero Gasperini is a big admirer of the playmaker, recently admitting: “Alvarez is a great player. If he came to Inter, he’d be an important reinforcement.”
NEWS:Alvarez reveals Arsenal dream
NEWS:Zamparini - Alvarez has agreed Arsenal move
NEWS:Zamparini - Inter favourites to sign Alvarez
However it isn’t all bad news for Gunners fans as Lille’s Ivorian international Gervinho is believed to be having a medical at the club on Wednesday.
The forward has been continually linked with a move to Emirates Stadium, having bagged 18 goals last season as the French side secured the Ligue 1 and French Cup double.
NEWS:Gervinho edges closer to Arsenal move
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