West Ham are looking for midfield reinforcements and have money to spend following the sale of Declan Rice to Arsenal for an initial £100m.
There has been turmoil behind the scenes at the London Stadium, with disagreements over potential transfer targets.
Alvarez is a player that West Ham are agreed about wanting though and they now have a fee in place with Ajax.
The midfielder landed in Amsterdam earlier this morning, according to Dutch daily De Telegraaf, as he got back from holiday in Mexico.
His agent then informed him that Ajax have agreed a fee to sell him to West Ham.
West Ham will pay Ajax a fee of €39m to take Alvarez to the Premier League.
The midfielder is now expected to fly to London soon to be put through his medical paces by West Ham and complete the move.
