The 27-year-old playmaker joined Sunderland on a season-long loan at the beginning of this campaign, and it has been claimed by La Gazzetta dello Sport in the past that the Wearside outfit would have to sign him for a £7.5 million fee should they secure Premier League survival.
Sunderland completed such a feat earlier this week, having played out a 0-0 draw with Arsenal, and many suspected that the clause in his contract had been triggered.
However, the Mail report claims that this is not the case, and Alvarez will be sent back to Inter at the end of this season, with no permanent signing planned.
Whilst a talented player in his own right, things have not really worked out for the Argentine international on Wearside, and it is hard to deny that losing him is hardly a big loss to the Sunderland squad.
He has made 17 appearances in all for the Black Cats, scoring just one goal and failing to assist a single strike. He started just five Premier League games, and due to an injury to his knee, was never once included under current interim coach Dick Advocaat.