Serie A - Inter sign Arsenal target Alvarez
However, Italian clubs Palermo, Roma and Inter all showed interest in Alvarez and it has now been confirmed he will be spending next season in Serie A.
Inter have secured the signing of the midfielder for an initial fee of £10.6 million, though that figure could rise due to add-ons.
A statement on the Argentinian club's website read: "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."
New Inter coach Gian Piero Gasperini said on Tuesday: "Alvarez is a great player. If he came to Inter, he'd be an important reinforcement."