Chelsea have rejected Manchester United's third bid worth £55m for midfielder Mason Mount.
Chelsea have made a counter-proposal of £58m plus £7m in add-ons, and offered to meet United in person to try and come to a positive resolution.
England international Mount has one year left on his existing contract at Stamford Bridge and is understood to be keen on a move to Erik ten Hag's side.
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Sky Sports News understands United are actively looking at alternative targets and it was suggested they would not increase their £55m offer after their third bid went in.
It was also understood United were open to negotiating if they received a positive response from Chelsea.
United must now decide if that response is positive enough to bring them back to the table or walk away and pursue alternative targets.
United retain an interest in West Ham captain Declan Rice and have discussed how possible it would be to sanction a deal.
Man City and Arsenal are also interested in Rice, with Sky in Italy reporting City are prepared to pay £75m + £15m in bonuses payable across two years for the midfielder. Reporter Gianluca Di Marzio added on Friday that City have entered 'advanced talks' to sign Rice ahead of long-time suitors Arsenal.
Due to Financial Fair Play rules, it is unlikely United could spend a huge portion of their budget on one player - especially as they have other areas they want to strengthen.
For that reason, they are looking at a number of other options in midfield. Potential sales of players would, however, increase their spending power.
Why Man Utd want Mount
Erik ten Hag first bumped into Mount when he was Ajax head coach. On loan at Vitesse Arnhem, the 18-year-old's free-kick led to his side's third goal as they beat Ajax 3-2 in March 2018.
Ten Hag, then in charge of just his eighth game at Ajax, reportedly tried to sign Mount for the Dutch club on loan from Chelsea the following season. Fourteen goals and 10 assists in his first full campaign of senior football, largely from central midfield, had caught Ten Hag's attention.
The likelihood of Mount staying at Stamford Bridge is remote with the midfielder unwilling to sign a new deal. Chelsea know this is the time to cash in on a player who has just one year left on his contract.
Ten Hag, it seems, could be about to get his man.
'United are monitoring other midfielders'
Sky Sports News reporter Mark McAdam on the Transfer Show:
"Manchester United are keen on the player. But they are also monitoring other midfielders, so it doesn't mean Mount is the only midfielder United are interested in.
"Chelsea want around £65m for a player who has come through their academy and the set-up there. He looked at one stage to be the future at Stamford Bridge, so you can understand why United want him.
"At the minute though, it's a case of Chelsea holding off until they get the amount they want. But you would expect Mount to be a Manchester United player by the end of the window."
'Mount and Man Utd a match made in heaven'
Sky Sports News reporter James Savundra on the Transfer Show:
"If we had this conversation a year ago, I think Mason Mount would have probably said he would want to spend the rest of his career at Chelsea, but his contract talks simply haven't gone the way Mount and his camp would have hoped.
"He wants to be paid a similar amount to the highest-earners at Chelsea considering what he's already done at the club, but that's not been the case and Chelsea's offer is very different from what Mount is after.
"Mount is now ready for another challenge and I think this could be a match made in heaven when you look at what Manchester United have been lacking this season. When they were missing Casemiro through suspension and lost Christian Eriksen through injury they really suffered. Mount has similar qualities to Eriksen but offers more legs in midfield, both going forward and defensively.
"Forget about what happened last season, Manchester United are getting a proven performer and great character."
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