
Third-placed Atletico have 63 points, three behind Real Madrid and seven adrift of Barcelona. Valladolid are on 16 points, 14 points off the safety zone with seven games left.
Valladolid grabbed a surprise lead after 21 minutes when Mamadou Sylla calmly converted a penalty awarded following a VAR review for a handball by Clement Lenglet.
The advantage was short-lived as Alvarez equalised from the spot after another VAR intervention four minutes later following a foul by Javi Sanchez on Giuliano Simeone, who turned scorer himself to put Atletico ahead in the 27th minute.
But the visitors stunned Atletico once again by levelling in the 56th as Sanchez’s free-kick took a deflection off Conor Gallagher in the wall, wrong-footing goalkeeper Jan Oblak.
Atletico regained the lead in the 71st minute with another well taken Alvarez penalty after Henrique fouled Marcos Llorente, before substitute Alexander Sorloth sealed the win with a close-range finish on the rebound.