UPDATE: Soccer by Ives is now reporting that he's confirmed that the Sounders have agreed to the terms of the loan.

Today at FutbolRed.com they have a source claiming that MLS agreed to terms with Millonarios (Spanish) for a six-month loan of Fredy Montero with an option to buy set at 4.5 Million dollars. The deal as reported seems to meet financial thresholds that would open a Designated Player slot and add Allocation Money to the Sounders coffers. Via Google Translate (all those caveats);

"MLS Montero allowed to leave and be with Millionaires for six months, with the possibility of extending it to a year and a purchase option of $ 4.5 million," the source told Futbolred consulted in the MLS.

There is still a significant portion of the deal that they are reporting is not complete;

Now there is hope that an agreement between the player and the Colombian champion, for the hiring is made official and put on blue Montero, at least in the first half of 2013.

Juan Arango regularly watches South American soccer and covers it for various outlets was asked via twitter about the validity of this source.

@cboehmTerra.com and FutbolRed?I trust them.But I don't trust them 100%. Like any source. — Juan Arango (@JuanG_Arango) January 3, 2013

Where previous reports were more of speculation this is a rumor that makes sense. The draw of Montero to a strong Colombian side is Copa Libertadores competition, not necessarily the Colombian national team. It is also at a financial point where the splash by Millonarios would seem to grant the Seattle Sounders a DP slot for half a season, some amount of allocation money and cap space.

That would put the efforts at the CONCACAF Champions League in doubt, but it would also make for a stronger team in the second half of the season when the run at the MLS Cup Playoffs begins. This is still not a done deal, but it now would be one that at least makes some amount of sense.