How Arsenal could raise Julian Alvarez transfer fee as summer move plotted

Arsenal are reportedly keen on signing Julian Alvarez from Atletico Madrid this summer

Arsenal may need to offload some of their homegrown talent and key figures to land Julian Alvarez this summer. The Gunners have set their sights on prising the Atletico Madrid frontman away from the Spanish capital - a player they will face in the first leg of their Champions League semi-final on Wednesday night.

However, a transfer fee north of £120million is anticipated to secure the Argentine's move to north London. To persuade Alvarez to make the switch to Arsenal, the club will almost certainly need to cash in on some of their assets.

The Gunners splashed approximately £270m on new signings last year, without offloading any significant players. Telegraph Sport reported earlier this year that the departure of at least one high-profile first-team player will be necessary to facilitate more substantial incomings.

Arsenal anticipate Jakub Kiwior completing a permanent move to Porto for a fee of around £15m, following a successful loan stint - though this alone is unlikely to prove sufficient.

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Two academy-bred stars could also be shown the exit door to bolster the funds needed to bring Alvarez in. Ethan Nwaneri and Myles Lewis-Skelly are both considered available and would represent "pure profit" given their development through the club's youth ranks. They are valued at around £35m and £30m respectively by the website transfermarkt.

Nwaneri is currently on loan at Marseille, but his ongoing difficulties there may deter clubs from pursuing a permanent deal. Lewis-Skelly has been linked with Manchester United, but Arsenal reportedly want a combined £100m for both homegrown players to leave the club.

Gabriel Martinelli is another young talent rumoured to be considering his options away from north London, with speculation mounting that Saudi Pro League clubs are readying an approach for the 24-year-old. The winger, who is balued at is believed to be evaluating his prospects at Arsenal in the wake of this summer's World Cup and carries a valuation of around £39m.

One forward is expected to depart given Arsenal's abundance of options in the centre-forward position. Gabriel Jesus, Kai Havertz and Viktor Gyokeres are all functioning as target men for the Gunners, and one of them may be sacrificed to accommodate Alvarez.

Jesus, valued at around £17m, appears the likeliest candidate for an exit, considering his position in the hierarchy and the limited time remaining on his contract. The Brazilian's agreement runs until 2027, and he recently expressed his affection for Palmeiras during an interview with Globo Esporte during the March international break.

However, Jesus has acknowledged he would welcome signing fresh terms at Arsenal, though a switch to his boyhood side to conclude his career could equally be a possibility.

Offloading Nwaneri, Lewis-Skelly, Kiwior, Jesus and Martinelli might represent the exits Arsenal need to facilitate a marquee swoop for Alvarez.

If transfermarkt's valuations are correct, Arsenal cold expect to raise around £136m from the sales of those five players. Given two, potentially three, of those salues could be booked as 'pure profit' on the club's books, that would give them more than enough room to make a move for Alvarez.