Pellistri joined Manchester United from Uruguayan outfit Penarol in the summer and has been playing for their Under-23 side this season.
Manchester United have been keen to loan him out this month in order to give him a taste of senior football in Europe and have fielded approaches from several clubs in Europe.
Club Brugge have shown an interest in getting their hands on Pellistri on a loan deal but it has been claimed that is on his way to Spain.
According to Belgian daily Het Laatste Nieuws, the winger is expected to join Spanish club Alaves on a loan deal.
Manchester United have been carefully studying the offers for him along with Pellistri’s camp and it seems Alaves have won the race.
The player’s camp also prefer the move to Spain with Alaves with the youngster unlikely to struggle with any language problems.
Once the deal is finalised, the winger will travel to Spain to undergo a medical and sign a loan contract until the end of the season.
Alaves are 18th in La Liga and are hopeful that Pellistri will boost their chances of survival in the top tier this season.