Benfica are expected to trigger their option to buy Manchester United youngster Alvaro Fernandez on a permanent transfer after his loan spell in Portugal.

Fernandez was recalled from Granada in January so he could sign for Benfica on loan for the remainder of the season with a view to a permanent move to Liga Portugal.

The deal included an obligation to buy if Fernandez started 50 per cent of games and outlined Benfica would pay €6million plus €3m in potential add-ons to sign him.

There was also an option to buy inserted into the deal if the obligation wasn't triggered and United included a buy-back clause and a sell-on fee if he is sold to another club.

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It's understood United were happy with the clauses they negotiated and sources feel they have built 'a lot of protections' in similar deals for recent departures, like Hannibal Mejbri's.

Reports in Portugal suggesting Benfica will sign Fernandez permanently have intensified and they are now expected to bring the curtain down on his time in Manchester.

Erik ten Hag has set a high bar for the best academy graduates to become first-team regulars during his time in charge and has been willing to oversee the sales of youngsters.

The likes of James Garner, Anthony Elanga, Zidane Iqbal and Charlie Savage were all sold by United, helping Financial Fair Play constraints and generating funds to reinvest.

United will receive €6m (£5.1m) plus an additional €3m (£2.6m) in potential add-ons for Fernandez, who joined the club from Real Madrid on a free transfer in 2020.

Fernandez won the Denzil Haroun Reserve-Team Player of the Year award in 2022 and spent the following season on loan with Preston North End in the Championship.

That spell was considered a resounding success due to the number of appearances Fernandez made, but he failed to convince Ten Hag and pre-season opportunities were limited.

“What message did United give me? That I should go out on loan, that Ten Hag didn’t count on me, that I should continue to gain experience, rhythm, and we’ll see what happens in the future," Fernandez told The Athletic in December.

"But it’s clear that football doesn’t end at any club and that you have to keep working. My main objective is to return to United and make a place for myself there.”

Fernandez will leave United without having made his senior debut for the club.