Manchester United will miss out on Bayern Munich midfielder Toni Kroos, who according to Spanish newspaper Marca, has agreed a €25-30m switch to Real Madrid.
The Madrid club are set to announce their first major signing of the summer that will disappoint many United supporters.
Kroos has been recently linked with the Red Devils as newly appointed manager Louis van Gaal begins his squad overhaul.
But Los Blancos have beaten United to the German star, who only has a year remaining in his Bayern Munich contract.
It is reported that Kroos has agreed a five-year-deal with the UEFA Champions League winners until June 30, 2019.
Bayern attempted to keep the 24-year-old by offering him a new contract, but were unable to meet the midfielder’s demands.
A completed deal for Kroos could open to the door for a Angel di Maria exit, who is a target for United as well as Premier League duo Arsenal and Liverpool.