The WBC middleweight world champion defending his title with a four-round demolition of Daniel Geale in June and his attention immediately turned to former light-middleweight world champion Alvarez.
Cotto’s advisor recently confirmed that talks are underway and that both sides are working to determine a date and venue.
“There is a lot of movement in every way,” Gabriel Peñagarícano told ESPN Deportes.
“Where will the fight be? It’s something that we have not determined. On November 21, it is a possibility. But neither is entirely definite.
“The date will be linked to the place. As I said before New York and Las Vegas are viable. This is a big business. We should not dismiss Dallas. We have to see what they have. The announcement could be in July.”
Alvarez, 10 years Cotto’s junior at 24, would likely need to move up a weight class for the clash as Cotto looks set to put his WBC strap on the line against the flame-haired fighter, whose sole loss was at the hands of Floyd Mayweather.
“We’re going to do what we can to make sure that he gets to keep that title and if a Canelo fight is made, which is everybody’s goal, we would like that fight to be for the title,” Roc Nation Sports COO David Iskowitch told Fightnews.com.
If that were the case, the winner of Cotto-Canelo may have to face the WBC mandatory challenger, Gennady Golovkin.