Montañés spent the 2016/17 season on loan at Levante, where he made 22 appearances and scored one goal as the Valencian side romped to the La Liga 1 2 3 title in style.
The La Masia youth product is now expected to join second division club Tenerife in the coming days, with talks at an advanced stage. The side finished in fourth place in the division last season but were beaten by Getafe in the play-off final to miss out on promotion.
Montañés joined the club from Real Zaragoza in 2014 and made 37 appearances, scoring once. However, Quique Sanchez Flores decided that he did not count on the winger and decided to loan him out when appointed last summer.
This summer, the exit of the Valenciano has been on the cards since early in pre-season, but Espanyol were likely hoping to receive some kind of transfer fee for the player.
Now, they have become desperate to get him off the wage bill as they reach the wage cap set by La Liga, with a mutual termination of contract set to give him a move to Tenerife.
Source: La Liga News