United had been heavily linked with a transfer for the midfielder with Grealish having helped Villa stay in the Premier League last season.
Many thought the 24-year-old would be the one to slot in alongside Paul Pogba and Bruno Fernandes at Old Trafford.
Though Red Devils boss Ole Gunnar Solskjaer instead pounced for Ajax ace Donny van de Beek, making the Dutchman his first signing of the summer.
According to Sky Sports, that plus Villa’s price demand for Grealish has seen United end their interest in the England star.
It’s claimed that Villa’s survival in the top flight simply made Grealish too expensive for the Red Devils.
Grealish had been told to snub any potential move to Old Trafford and head to Arsenal instead as teams ramp up preparations for the new season.
Don Hutchison said: “I think it’s all about timing. The form of Bruno Fernandes and Paul Pogba has probably swayed Ole to stick with those two, if Paul Pogba hangs around, so timing is probably not on Jack’s side to go somewhere like Man United.
“I think he’d be a good signing for them, obviously, Liverpool as well. I think Arsenal at this present time would be a very good move for him.
“Having said that, it just depends on who else Arsenal bring in. Because if they expect to bring in Jack Grealish for between £40-45m and expect Arsenal to get to the top four, it ain’t gonna happen.
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“So, if Jack Grealish is a stepping stone in terms of they’re going to then attract better players in different positions i.e. centre-halves, then they have got a chance.
“I think for Jack it will be a pretty good move because they’re a footballing side.”
The new season gets underway on September 12.