The 25-year-old joined Inter Milan from Velez Sarsfield in the summer of 2011, but has struggled with injuries during his time in Italy.
"I never had any regrets about joining and I never thought about a return to Argentina," Alvarez told Tuttosport.
"I knew that it would not be easy when I got here. Inter are a big team and one of the most important in the world. I was never going to give up easily, though.
"I knew that a return to Argentina would be a step back for me and my goal has always been to move forward.
"A lot has changed for me since I came to Inter. I have much more confidence now. I am very well physically and I feel strong on the pitch. For a while, this was not the case due to physical problems."