The Argentine is now a key cog in Pep Guardiola's treble-winning machine, stepping up from his bit-part role to become City's chief creator.
Alvarez has started every game this campaign, slotting into an advanced midfield role while also helping support Erling Haaland.
The position opened up after the season opener against Burnley, where Kevin De Bruyne picked up a long-term hamstring injury.
And Alvarez has grasped the opportunity with both hands, putting up De Bruyne-esque numbers in the Belgian's absence.
The 23-year-old has netted four goals in all competitions while also providing three assists, with two coming against West Ham last weekend.
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Alvarez has also created a total of 16 chances in the Premier League this season, becoming the first City player to do so in the opening five games since De Bruyne in 2019.
He is proving to be the perfect replacement for the man Guardiola has relied upon for creativity over the last few years.
And the City boss is delighted with the Argentine's performances.
Speaking earlier this week after Alvarez scored a brace and provided an assist in Europe, Guardiola said: "Really good, all the actions are really good and so quick.
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"He is so young. What a signing the club have done. He has everything - fighting and goals and assists. Incredible, lovely guy.
"Playing behind Erling he is an incredible threat. Really pleased for him, he deserves it."
With De Bruyne, Mateo Kovacic and Bernardo Silva out injured, Alvarez has stepped up for his side.
He played limited minutes last campaign, having to compete with De Bruyne, Silva and former captain Ilkay Gundogan for a place.
In fact, he didn't play five games in a row until May, a feat he has now achieved in the opening five games of the new season.
And Guardiola has praised the World Cup winner for his determination and mentality for waiting for his chance in the City side.
Ahead of hosting Nottingham Forest this weekend, the City boss said: "He always has good behaviour, playing, not playing, being a world champion or not. Always the same.
"The perfect dose of disappointment when he doesn't play but always ready for the opportunity.
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"Last season we had Ilkay [Gundogan] and Kevin [De Bruyne]. Right now with the injuries he's had minutes and he gives us a lot of good things.
"That's why he's playing but he has to continue. Many games, some games he won't play, hopefully, players come back and fight for positions."