Mateo Kovacic has told United he is not interested in joining them after the Red Devils launched a £53.5million bid, according to reports in Spain.
The Croatia World Cup star, 24, has told current club Real Madrid he wants to leave this summer and has also drawn interest from Chelsea and Manchester City.
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The reason behind Kovacic’s decision to reject United is reportedly an aversion to Jose Mourinho’s way of playing, in the latest transfer window blow for the Portuguese boss.
Marca report that ‘stylistic issues’ were a key factor for the player, who has grown frustrated with a lack of opportunities at Real.
He made just 21 La Liga appearances last season, unable to break into a midfield of Casemiro, Toni Kroos and compatriot Luka Modric.
Kovacic complained that his limited playing time would hurt his national team chances, and he started just once at the World Cup as his country reached the final.
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But rather than join United, he has invited offers from elsewhere, with Chelsea looking at him as an alternative if they do not sign Sergej Milinkovic-Savic or Aaron Ramsey.
Chelsea are reported to have bid £115m for the former and are considering a £30m offer for Arsenal’s Ramsey.
It is the latest frustration for Mourinho, who has reportedly clashed with CEO Ed Woodward over a lack of funds and is likely to be priced out of the Milinkovic-Savic stakes.
He remains confident the club will still bring in one more player however, having already spent £70m on Fred, Diogo Dalot and Lee Grant.