Last season, the Saints suffered a disastrous campaign that ended with the club losing their Premier League status.
With relegation, it is expected that several players will leave the Hampshire outfit this summer.
The 20-year-old midfielder, who joined Southampton in the winter for a £12m transfer fee, was one of the brightest sparks of last season.
And the Argentine is drawing interest from Italian giants AC Milan and Premier League outfit Brighton.
Alcaraz has four years left on his contract with the Saints and Southampton are hopeful of keeping hold of him.
In their attempt to retain the player’s services, Southampton have put a £25m valuation on Alcaraz.
Roberto De Zerbi wants to add Alcaraz to his squad, as he believes that the midfielder suits his style of football.
The 20-year-old featured in 18 league games for Southampton and netted four goals while contributing two assists.
