Liverpool are set to beat Manchester United to the signing of Bayern Munich ace Thiago Alcantara, with the Premier League champions now in advanced talks over a £25million deal for the midfielder.

Daily Star Sport understands both Liverpool and Bayern expect the move to be completed following months of speculation.

The Reds will pay an initial £20million for Thiago and a further £5million in bonuses, which comes as a blow to fellow suitors United.

However, things could have worked out very differently for them had David Moyes not snubbed a move for the Spain international seven years ago.

Liverpool are set to beat Manchester United to the signing of Bayern Munich ace Thiago Alcantara

According to ESPN, legendary United boss Sir Alex Ferguson brokered a deal to sign Thiago after being made aware of his desire to leave Barcelona in 2013.

Ferguson reportedly lined up a £17million move for the player, who was 22 years old at the time, but when the Scot retired his compatriot Moyes vetoed it.

But it all could have worked out very differently for United had David Moyes snubbed the chance to sign Thiago in 2013

The latter is said to have done so because he didn’t know enough about Thiago, meaning he instead targeted a move for another Barca star in Cesc Fabregas.

And when that failed, he eventually signed former Everton midfielder Marouane Fellaini.

Spanish football expert Guillem Balague revealed more about Moyes’ snub of Thiago earlier this summer.

Sir Alex Ferguson brokered a £17million deal for the midfielder before stepping down as United boss, but Moyes vetoed the move

“[Thiago] asked his agent (Pep [Guardiola]’s brother) to get him a transfer from Barcelona to #MUFC,” Balague posted on Twitter.

“It was a cheap deal: Bayern eventually paid €21.7m [£19.9m) as FCB didn’t play him more than 60% of the minutes the previous season. If they had, he would have cost €90m (FCB forgot about that clause?)

Get the latest transfer news straight into your inbox!

Want to be on the ball with Jadon Sancho to Manchester United updates? Or perhaps you're a Chelsea fan wondering who on earth could join next?

Well then sign up for the brilliant new Daily Star Sport email newsletter!

From the latest transfer news to the agenda-setting stories, get it all in your email inbox.

How do you sign up?

It only takes a matter of seconds.

Simply type your email address into the box at the top of this article and hit 'subscribe'.

And that's it, job done. You'll receive an email with all of the top news stories every single morning.

You can find out more information on our email newsletter on this link here.

“David Moyes decided he was not a player for him at United. Thiago could not believe it and being in Munich to sing the contract to join Pep’s team, asked his agent to ring MUFC again.

“Same answer, not a player needed. Then he decided to join Bayern”.