Blackburn have told Carlos Villanueva that he is free to find another club during the January transfer window.
Rovers have a loan agreement with the Chile international which is due to run until next summer, but are prepared to tear up that deal.
The 22-year-old was brought to Ewood Park on a 12-month contract from Audax Italiano over the summer.
However, having been restricted to only a handful of appearances under Paul Ince, the man that signed him, he has fallen ever further down the pecking following Sam Allardyce's arrival in the Rovers hot-seat.
As a result, Blackburn will not be taking up the option to make the current arrangement permanent and Audax general manager Claudio Tessa admits the youngster could be on the move once again in the New Year.
"They (Blackburn) have already confirmed to us that they will not use the option to buy him," he told Cooperativa.
"Now we are going to use a part of the agreement that allows us to transfer Carlos to another club if they agree.
"The transfer market is open, but there is little time so it will not be easy."
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