Alvarez joined Atletico from Manchester City last summer in a deal worth around £82 million.
He has since had the most successful season of his career, scoring 29 goals and providing 7 assists in 54 games across all competitions.
Simeone believes it's logical for top teams to be interested in Alvarez due to his exceptional skills, youthful energy, and dedication to his craft.
When asked about the interest from Arsenal, Barcelona, and other top clubs, Simeone said, "It's logical that everyone wants Julian. He's an extraordinary player with a strong work ethic and a desire to succeed."
Simeone emphasized the importance of Atletico Madrid's fans in supporting Alvarez and helping him feel happy and fulfilled.
He stated, "We have to take care of him, help him feel happy, and that's by winning. To get there, everyone needs to give their best effort."