Manchester United reportedly decided against sending Facundo Pellistri on loan for the second half of the 2022-23 campaign on deadline day.
The 21-year-old did not make his first-team debut for the Red Devils until the EFL Cup contest with Charlton Athletic last month, but he has been regularly involved in the squad in recent weeks.
Pellistri also played against Nottingham Forest and Reading in the EFL Cup and FA Cup in January, but he is yet to feature in the Premier League for the 20-time English champions.
There was a host of speculation surrounding the Uruguay international's future during the January transfer window, with a number of clubs said to be interested in signing him on loan.
According to Football Insider, Pellistri had agreed to join Championship outfit Watford on loan for the remainder of the campaign, but Man United boss Erik ten Hag blocked the deal at the final moment.
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The report claims that Ten Hag believes that the South American can contribute in the first team in the second half of the season, with the Red Devils still competing in four competitions.
Pellistri was on the bench for the Premier League clash with Arsenal on January 22, but he was left out of the squad against Crystal Palace on Saturday afternoon.
Ten Hag said that he 'sees a future' for Pellistri at Man United after handing the attacker his first-team debut against Charlton in the quarter-finals of the EFL Cup.
"I see a future in him. He is doing really well and we have to see what is the best [for him]. He is progressing. Against Everton [in a behind-closed doors friendly], I was really happy with his performance," said the Man United boss.
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"I was happy with his performance at the World Cup, so his progress is really good and now he is coming on and has an effect. So that's the next step that I say: 'well done Pelli, keep going'.
"I mentioned already Pellistri came on and it was a debut. It was not long but he was really lively, some good actions and also the assist on the second goal."
Pellistri, who arrived at Man United from Penarol in August 2020, was in action for Uruguay at the 2022 World Cup, representing his country on three occasions in Qatar.
The Red Devils are currently preparing for back-to-back Premier League games against Leeds United, with the two sides first meeting at Old Trafford on Wednesday night.