SUNDERLAND and Inter Milan could still be set for a court battle over the Ricky Alvarez row, despite claims from the player’s agent that he has officially become a free agent.

Alvarez will not be returning to Wearside after it emerged from Italy that the winger has had his contract paid up by the Italians, meaning he is now looking for a new employer.

But Sunderland still expect the situation to be cleared up in the courts after UEFA were contacted to ascertain whether the Black Cats were within their rights not to pay a £7.5m transfer fee for the winger.

The Premier League club have always maintained they would not sign the Argentine international permanently since the end of last season, despite an agreement in place which would have seen a full-time switch occur after a season-long loan.

But Sunderland refused to pay, citing a breach of contract because Inter had allegedly not granted permission for Alvarez to receive treatment on an injury which significantly restricted his playing time.

The San Siro club, however, and Sunderland have been in contact with UEFA and the Court of Arbitration for Sport to find a solution. Sunderland had nothing to do with the decision for the player to become a free agent, although it is believed that was what was wanted by Inter and the player.

Alvarez’s agent, Marcelo Simonian, revealed his client is looking for a new club and that he looks set to return to his homeland.

Simonian, his comments translated from Italian, said: “He is a free agent. Inter has transferred him to Sunderland, who has not exercised their option to buy so now we are free. In Europe we having nothing. He will probably play in Argentina. River Plate? Really I don’t know. I have not spoken.”

Alvarez was told he could return to Italy to sort out his future towards the end of last season but Sunderland were prepared to accept him back should the Court of Arbitration rule that way.

In not signing Alvarez, it appears to have handed Dick Advocaat more money to strengthen his forward line before the transfer window. On Monday, Fabio Borini returned to the Stadium of Light in an initial £7.75m deal two years after he first arrived on a season-long loan.

Borini hopes that a successful season with Sunderland can force his way back in to the Italy reckoning, which is why Emanuele Giaccherini has decided to move to Bologna.

Giaccherini has endured a frustrating spell in the North-East and, having often been involved in his country’s squads when fit, is keen to stay in Italy’s plans building up to Euro 2016.

The 30-year-old said: “I really wanted to get people talking about me again at a big, ambitious club. I know that, if I do well at Bologna, I will have a chance of wearing the national team shirt again.

“As soon as Bologna came looking for me, I said ‘yes’ straight away. This is a serious club with a rich and solid history, and they have built a squad full of interesting young players.

“It's going to be up to us experienced players to take the responsibility and set an example for the squad, and I'm ready. English football has given me a lot, but now the important thing for me is to do well here and do my best for Bologna. I return to Italy with great enthusiasm.”