Midfielder Liam Grimshaw has departed Motherwell to temporarily rejoin his parent club Manchester United.

The 20-year has spent the first half of the season on-loan to the Fir Park side and his contract was due to expire on Sunday, 17th January.

Manchester United had the option to recall Grimshaw at any stage during the transfer window and have exercised the right with a view to selling the player on.

Manager Mark McGhee has admitted that, despite talks to sign the player, they have lost out to an undisclosed club south of the border.

The youngster became a key player for the Steelmen in the opening months of the campaign, making 16 appearances since September.

McGhee told the club's official website: "We've held numerous very positive talks with both Liam and his representatives about the possibility of him becoming a Motherwell player.

"So much so, our plan was to try and finalise an agreement with Manchester United this week. However, we have been gazumped at the last minute by an English club who offered a package that we simply cannot compete with.

"Whilst that is frustrating, we completely understand everyone's position.

"I would like to firstly sincerely thank Manchester United for allowing us to have the player for the last four months.

"Liam himself has been fantastic in how he has approached the move and his conduct and performances throughout. We're naturally disappointed to be losing him, but at the same time, proud of him that he's earned such a good move and wish him every success.

"From Motherwell Football Club's point of view, it is yet another example of how we are set-up to develop young players and this should give further encouragement to any footballer, club or parent about what we have to offer and the platform we can provide.

"We prepare for every eventuality so have other irons in the fire which we will now explore."