Reports out of Argentina have Jose Adolfo Valencia already in Buenos Aires and signing on for a season-long loan with Olimpo de Bahia Blanca, commonly called Club Olimpo. Club Olimpo are the same club that Trencito was rumored to be going on loan to midway through last year (here).
This loan looks like a distinct possibility with Club Olimpo already reporting the news on their official site (here). The article states that Trencito is on loan for one year with an option to buy and that he has already been presented to the press in Buenos Aires.
Nothing has been made official on the Timbers' end so far, although FutbolMLS.com reports that a Timbers insider had confirmed the possibility. (Translated from Spanish by Google Translate.)
A person familiar with the Portland Timbers person with knowledge of the negotiations confirmed to FutbolMLS.com that the club are looking for different options for player development in the near future, but said nothing is yet confirmed.
This was echoed by the official Timbers' twitter account yesterday.
It is unclear whether Trencito would be on loan for the full year or if he would be on loan for the Torneo Final, which runs from February until June. Either way the rumored option to purchase means that Trencito could be out of Portland for good.