The 27-year-old attacking midfielder joined Premier League outfit Sunderland on a season-long loan deal from Italian club Inter in the summer of 2014.
Ricky Alvarez stats
Alvarez is a talented and creative player, but he failed to make a huge impact at Sunderland last season.
The Argentina international could make just 13 appearances in the Premier League during the 2014-15 campaign.
The former Velez Sarsfield star failed to score a single goal and created just seven chances in those 13 league matches.
Alvarez had a pass accuracy of 89% and a shot accuracy of 50%, and won two headers, 29 dribbles and nine tackles.
However, given the quality and experience that the Argentine has, Sunderland fans should retain their faith in him.
If Alvarez can overcome his injury problems and is afforded time, then he will certainly be able to show his calibre next season.