Alves has been in talks with the La Liga leaders about extending his contract, which runs until 2012, and Spanish newspaper AS reports that a deal is close.
On the move: Dutch international Van der Weil shone at the World Cup
Bayern Munich have ditched their interest in Van der Wiel, but City still face stern opposition from Juventus for the 23-year-old Ajax right back.
The Italians have enquired about his availability and made it clear they will launch a bid in the summer.
Van der Wiel, who has been at Ajax since he was eight. is contracted to the Amsterdam outfit until 2013 and is valued at ?15m.
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