The 18-year-old appears to have been frozen out of Espanyol’s B team in recent weeks as rumours about his departure continued to circulate.
Fernandez is out of contract at the end of the season, and has a release clause of around £1.3m.
✍️ #LUFC have agreed a deal to sign Espanyol striker Mateo Joseph— LUFC Youth Academy (@leedsutdacademy) November 19, 2021
The 18-year old is set to sign the contract in the new few hours and will officially join on January 1st
Joseph has attracted interest from both Barcelona and Manchester City
According to a report from Leeds Live last month, Espanyol value the striker at a higher price than the £419k they have reportedly received from Leeds.
The Whites are expected to seal his signature in the coming hours, with the youngster set to join up with his new teammates at Thorp Arch at the turn of the year.
Fernandez struck 44 goals in 56 games across three seasons as he rose from the U16s to the U19s over the course of the last three seasons.
ACUERDO— Diego Balbontin (@diegobalbontin) November 19, 2021
@RCDEspanyol y @LUFCes acercan posturas y cierran el traspaso de Mateo Joseph
✍ A falta de firma, que se producirá en las próximas horas, el Cántabro jugará en Inglaterra a partir del 1 de enero. pic.twitter.com/6kduySHMtT
His current club believe he has excellent potential and rejected advances from city rivals Barcelona in the summer.
Arsenal and Liverpool were also supposedly among the clubs keeping tabs on the young talent, who was born in Spain to two English parents.
These new developments follow previous rumours that Marcelo Bielsa’s side and Espanyol were in “total agreement” over the transfer.