Fernandez’s game-time reduced drastically at Newcastle last season and he does not find himself in the Magpies’ plans this term.
He is therefore more likely to get game-time elsewhere and Newcastle were looking to send the defender on loan.
Coventry City were interested in taking on the defender on loan but it now seems they are set to miss out on him.
Spanish top tier side Elche are close to signing Fernandez on loan, meaning Coventry miss out on the Argentine.
Elche are currently winless in La Liga but the lure of the Spanish top flight may have proved decisive rather than going to the Championship.
Fernandez made just seven appearances last season for Newcastle in the Premier League and none since early December.
He will be hoping that with Elche, he is able to get more minutes on the pitch, while Coventry will have to look at other names if they want a centre-back in the door.