He moved to Pachuca, earning six championships with the team: one Copa Sudamericana, three CONCACAF Champions' Cup, one SuperLiga, and the Mexican Clausura 2007.

Álvarez, along with Danilinho, Héctor Mancilla and Lucas Lobos in the attack, became the so-called "Cuatro Fantásticos" ("Fantastic Four") of the Liga MX.

On December 14, 2014, he received a red card along with teammates Hernán Burbano and Nahuel Guzmán in the Apertura 2014 final against Club América.

Álvarez started the play that dramatically tied the game in overtime, by crossing to Jürgen Damm, who then re-crossed to Jesús Dueñas, that finally scored a header at the 119'.

With very few minutes in the Apertura 2017 season, a 38-year old Álvarez officially retired from his playing career after Tigres beat archrival CF Monterrey in the first and only League final between the two.

After his retirement, Álvarez became an instant idol among fans, and is considered, along with names such as Tomás Boy, Gerónimo Barbadillo, Claudio Núñez, Walter Gaitán and Lucas Lobos, as one of the most emblematic players of Tigres.