FIFA have blocked the proposal for Ricky Alvarez to return to his homeland with Argentine side San Lorenzo, according to reports in Italy.
Sunderland have been involved in a summer-long dispute with Inter Milan over Alvarez after failing to activate the £8million permanent clause in the midfielder’s season-long loan deal at the Stadium of Light.
San Lorenzo had hoped to provide a solution by agreeing provisional terms over a contract with Alvarez after the Argentine international appealed to FIFA to be made a free agent.
But FIFA, called in to arbitrate the dispute by Inter, have today ruled that Alvarez cannot join San Lorenzo, before the uncertainty over his situation is clarified.
They have opened the door to a possible loan move to another European club though, with Porto among those who have expressed an interest.
Sunderland were duty-bound to sign Alvarez this summer under the terms of his season-long loan after remaining in the Premier League.
But the Black Cats argued that Inter had breached the loan contract by stalling over a decision on knee surgery for Alvarez, with FIFA yet to make a decision on the transfer.