Manchester United have failed in their bid to sign Lucas Moura with an improved £29.8m offer for the Sao Paulo player, reports The Mirror.

The Brazilian has been attracting interest from Real Madrid and Inter but the Red Devils' bid was believed to be the strongest and they even sent a delegation across the Atlantic Ocean to seal the deal.

It was United's second bid for the 19-year-old after Sao Paulo had rejected the first offer of £25.9m even though it met their original asking price.

Lucas is currently in the United Kingdom training with the Brazil squad ahead of the Olympic Games and will likely feature in the friendly against Team GB on Friday, July 20.

The Paulista club only own 80% of the player's economic rights, the remainder resides with the 19-year-old, and with no current shirt sponsor they see the youngster as their main marketing tool to bring in financial investment.

A source at Sao Paulo told The Mirror: "What matters in football is what you achieve on the pitch, not how much you have in the bank. We have decided that Moura will be an important part of the trophies we want to win."

United will now have to put in another improved bid or back out from the transfer, though it is unlikely that a rival team will come in with a better offer.

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