Wolverhampton Wanderers have confirmed that winger Goncalo Guedes has joined Benfica on a loan deal for the rest of the season.

During the summer transfer window, Wolves agreed to pay Valencia a fee of £27.5m for Guedes, who penned a five-year contract at Molineux.

However, the Portugal international failed to live up to his price tag during the opening half of the campaign, struggling to hold down a starting role under three different head coaches.

In total, the 26-year-old made 12 starts and six substitute outings in all competitions, contributing two goals and one assist.

One of his strikes recently came against Liverpool in the FA Cup, but Guedes was a notable absentee from the squads for the fixtures against West Ham United and the replay with the Merseyside giants played over the past week.

Julen Lopetegui acknowledged at the time that it had been "a tactical decision", a strong indication that Guedes was no longer regarded as a key player in his plans.

That has now proven correct with Guedes having been confirmed as a Benfica player for the remainder of the campaign after arriving in his homeland on Thursday night.

Although it is not stated by Wolves, it has been widely reported that the arrangement is a straight loan with no option to buy.

Guedes is returning to the club where he started his professional career, making 63 appearances before earning a €30m switch to Paris Saint-Germain in 2017.

The player initially progressed through the youth academy, spending time at As Aguias from the age of nine and going on to contribute to three Primeira Liga title successes.

Guedes joins a Benfica team which currently sit four points clear at the top of the standings, their previous commanding position having been reduced courtesy of five dropped points since the resumption of action after the World Cup.

The leaders square off with Santa Clara on Saturday in a game where Guedes will hope to feature in the squad.