The 22-year-old will spend the 2026/27 campaign at the Ciutat de Valencia, arriving to bolster Levante's attacking options out wide as the club's fourth loan addition of the summer, following Dani Requena from Villarreal and Manu Sánchez and Hugo Sotelo from Celta Vigo.
Fernández joined Villarreal as a free agent in January after his contract at Vélez Sarsfield expired amid an unresolved dispute over a new deal, signing terms in Spain until June 2031.
He had rebuilt his career following a serious anterior cruciate ligament injury suffered in December 2024, a setback that came in the same season he helped Vélez win the 2024 Torneo Apertura, one of the club's Argentine league titles.
He returned to fitness in time to celebrate that success with his team-mates, though the injury and a breakdown in contract talks ultimately led to his exit from the club that developed him from boyhood.
Villarreal sent him out on loan to Real Oviedo for the second half of last season, where he made 16 appearances in the top flight, nine of them as a starter, and registered four assists as the newly promoted side established themselves in LaLiga.
That form appears to have persuaded Levante to move for him ahead of their own campaign, with reports in Spain suggesting the agreement includes both a purchase option for Levante and a buy-back clause allowing Villarreal to recall him in future seasons.
Villarreal, who had four non-EU players on their books and needed to create space in that quota, were able to find a solution that suits both clubs: Levante gain a versatile wide player with Primera División experience already banked from his time in Asturias, while Villarreal retain long-term control over a player they still regard as one of their better prospects for the future.
For Fernández himself, the move represents a chance to build on the momentum of his Oviedo loan and establish himself as a regular starter in Spain's top flight, something that eluded him during his final, injury-disrupted season in Argentina.