Manchester United are switching their focus away from Manuel Ugarte due to Paris Saint-Germain's high asking price.
United have already signed striker Joshua Zirkzee and defender Leny Yoro this summer and are now targeting a new midfielder. Ugarte was among their top targets, but United have now turned their attention to other options.
According to the Athletic, United believe PSG's asking price is too high and they will only re-enter negotiations if their demands are lowered. PSG are keen to recoup the £51.4million they paid Sporting Lisbon for Ugarte last summer and a number of other clubs are also interested in the midfielder.
They have also spent big on a new midfielder, potentially paving the way for Ugarte's exit. 19-year-old Portugal international Joao Neves has joined PSG from Benfica in a deal worth up to £60m.
"I'm very proud to be joining Paris Saint-Germain, a very ambitious club," Neves said after signing a five-year deal. "I'm going to give my all to help my team-mates, to grow at this fantastic club and to win numerous titles.
PSG president Nasser Al-Khelaifi also hailed Neves, adding: "We are delighted to welcome Joao Neves to the Paris Saint-Germain family. Joao is one of most talented players in Portugal and internationally.
"He was so passionate to join Paris Saint-Germain and determined to fight for the jersey - which is what we expect of all our players. We continue to build a fantastic young team at Paris Saint-Germain - based on teamwork, talent and collective spirit - which is the foundation of our club's great future."
United, meanwhile, are keen to strengthen in midfield after recording their worst ever Premier League finish last season and Scott McTominay's future remains up in the air. Fulham have made multiple offers for McTominay, but manager Erik ten Hag said last month that he wants him to stay.
"We have very good players so there will always be an interest from other clubs," Ten Hag said. "When you score 10 goals in a season and also perform very good for Scotland, then there will be an interest.
"But we want to keep him because he is a very important player for our squad. What he can contribute, as we saw last season once we had our sixes available, he could play in a more advanced role and he is a highly interesting player for our team."