The 19-year-old joined Manchester United last summer from Uruguayan outfit Penarol and featured for their Under-23 side before being loaned out to Alaves in the winter transfer window.
The teenager made 12 appearances for the Spanish side and did enough to convince the club to try and keep him for one more year.
With Alaves managing to avoid relegation from La Liga, the club are now moving forward with their attempt to extend Pellistri’s loan deal.
It has been claimed that they have officially approached Manchester United with the request to keep the winger on loan next season as well.
The Uruguayan has impressed at the Mendizorrotza Stadium and the club are pushing to extend his stay.
Pellistri will hold talks with Manchester United on Monday to discuss his options ahead of the summer transfer window.
A return to Alaves is a possibility, but several other Spanish clubs are also interested in signing him on loan.
Manchester United are expected to agree to loan him out again next season in order to aid his development.
