Hernandez, 19, joined the youth ranks at Atletico Madrid in 2008 and was one of the main supports in winning the 2015-16 youth league and King's Cup, reports Efe.
Theo, who is a brother of Atletico defender Lucas Hernandez, has played international matches with his French national youth team.
Deportivo Alaves announced on its website the loaning of the new player, describing him as a "young promising player."
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