Man City have made an offer in excess of £120 million, including add-ons, for Nottingham Forest midfielder Anderson, 23.
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Should the deal go through, he will become the most expensive British player in history, overtaking England midfield partner Declan Rice.
According to The Athletic, while Anderson is highly regarded by Man United, they have no intention of paying such a fee.
United are now targeting other players, with West Ham’s Mateus Fernandes and Bournemouth ace Alex Scott of interest.