Álvarez signed with Major League Soccer before the league's inaugural 1996 season, and was allocated to the Dallas Burn. In his year with the team, Álvarez he scored three goals and five assists for the team from a defensive midfield position, and was named as part of the MLS Best XI. Álvarez moved to Mexico for the 1997 season, where he played for Veracruz. He returned to Dallas Burn in 1998, where he recovered his starting position; Álvarez would be an extremely important player in the Burn's central midfield for the next two years, but near the end of 1999, he was traded to the New England Revolution for Ariel Graziani. Álvarez played for the Revolution throughout 2001 before the team decided not to renew his contract for the 2002 season.