Arsene Wenger tried to sign him in the summer window of 2011 from his former employers Velez Sarsfield, but in the end he chose to join the Serie A giants.
He has enjoyed a mixed debut season at the San Siro, racking up two goals and five assists- playing a bit part in a frustrating year for Inter.
However, Alvarez has not started a competitive match for the Italian side yet this campaign, sparking doubts over his future.
With the English Premier League club looking to add a winger to their squad as both Theo Walcott and Andrey Arshavin could be heading out of the Emirates Stadium in the January transfer window.
The Argentinean international would surely relish the chance to play for the Gunners and turn out for the first-team regularly.
Much is now sure to depend on Alvarez’s form between now and the opening of the window. If he starts to put in some good performances for Inter, then they would be reluctant to let him go.
Keep an eye out for the twists and turns in this story!