Bayern Munich are reportedly expecting Manchester United to make an offer for in-demand midfielder Thiago Alcantara, with Liverpool said to be unwilling to match the German side's asking price.

Thiago's existing deal is set to expire next summer and he has not signed an extension, with multiple reports claiming he is keen on pursuing a new challenge.

As a result, Bayern will need to sell him this summer to avoid losing him for free, with the likes of United and Liverpool able to negotiate a pre-contract agreement with the Spaniard in January.

The reigning Bundesliga and Champions League winners are holding out for a £27m fee but, according to German journalist Constantin Eckner, Liverpool think that price is too expensive.

Thiago could leave Bayern Munich for Liverpool
Thiago looks set to leave Bayern Munich and both Manchester United and Liverpool are interested in his services

Bayern, however, are said to be expecting United to make a bid for the midfielder.

It comes after Bayern's honorary president Uli Hoeness claimed that United and Liverpool are attempting to "blackmail" the Bundesliga giants by waiting until late in the transfer window before making a "cheap offer".

Speaking to German publication Sport 1, Hoeness said: "It is a difficult situation.

But Jurgen Klopp's side will have to contend with Bayern's £27m valuation of the midfielder
Liverpool are unwilling to pay Bayern's £27m valuation but the German side are expecting an offer from United

"A while ago we agreed on a new four-year contract. Some days later he said: 'I’m looking for a new challenge'. Which is totally okay. I think he obviously has an agreement with Liverpool or Manchester United or both of them.

"Now both clubs are bluffing, and no one has contacted Bayern Munich officially. From my point of view, that has no style.

"They’re trying to blackmail us, by waiting until the last week, when they’re going to make a cheap offer."

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In the same interview, Hoeness hit out at David Alaba's agent, calling him a "money-grabbing piranha" as talks continue about the Austrian's Bayern future.

"Alaba is a very good player and Hansi Flick wants him to stay by all means," Hoeness added. "Everyone wants him to stay, but he has a money-grabbing piranha as his agent. And Alaba's father, who I rate very much, lets himself be influenced by him.

"I hope that David will come out on top at the end. It's only about the money. He's already at the best club in the world, where else should he go? It's his decision, in the end. He's 28 and should not let himself be influenced from the outside."