Manchester United have been leapfrogged by Tottenham in the race for Sergio Reguilon.
The Red Devils have been keen to land the Real Madrid left-back, 23, in recent weeks as the Spanish side look to sell.
Reguilon spent last season on loan at Sevilla, impressing for the La Liga outfit.
But Madrid want to place a buyback clause in any exit deal this summer, due to the fact they feel the full-back could prosper and enjoy a career at the Bernabeu in later years to come.
This was a sticking point for United, who have fallen behind Tottenham, according to the Athletic.
The Red Devils also didn't want to pay Madrid's asking price.
"Tottenham have a made an official bid to Real Madrid for Sergio Reguilon," transfer expert Fabrizio Romano tweeted this evening.
"Manchester United are in talks by days with Real but *won't* accept to pay €30m and *won't* accept any the "buy back clause" asked by the Spanish club."
Reguilon is a product of Madrid’s academy, emerging from their youth ranks to make his professional debut for the Castilla side in 2015.
He racked up 22 appearances for the first team in 2018/19, but Zidane decided a loan stint at Sevilla was the best move for his development last season.
Tottenham are also racing to secure a deal for Real Madrid outcast Gareth Bale amid fears Manchester United will beat them to the Welshman.
Bale, 31, left north London in 2013 for £86m but could return in a loan deal with Los Blancos paying half his wages.
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United made the first move over the weekend, as their plan to sign Jadon Sancho looks dead in the water.
But the Sun report Daniel Levy and Tottenham are putting together an 11th-hour package to secure Bale's return.
The double Real Madrid deal will greatly excite Jose Mourinho, who will no doubt be happy to get one over former employers United.