The Uruguayan winger arrived several years ago with plenty of promise, but has failed to live up to that potential.
A loan spell at Granada this winter has been middling, with Pellistri managing one goal and one assist.
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Evaristo Gonzalez, the secretary at Penarol where Pellistri played before joining United, admitted to the club's huge interest in the winger at the time.
He told Uruguayan outlet Referi: "In the talks with Manchester, at one point they told me:
'Due to the club's policy we don't pay for release clauses so we send the money to the club directly and you fix that problem.'"