New Red Devils chief David Moyes has made snapping up the Spanish U-21 international one of his top priorities this summer, and is willing to allocate upwards of £15million of his transfer budget to do so.
But, local rivals City are firmly in the hunt too, with the club’s hierarchy keen to inject further creativity into their attacking armoury.
Reports suggest that United have made contact with Thiago’s representatives, but an official offer is yet to have been tabled.
Barcelona are rumoured to be willing to allow the playmaker to leave for a respectable fee this summer, as he grows more and more frustrated by a lack of first-team opportunities.
The 22-year-old is battling the likes of Cesc Fabregas and Andres Iniesta for a chance to perform in his favoured position, which is a fight he seems to be losing.
As a result, a move to Old Trafford or the Etihad Stadium may appeal to him and grant him the opportunity to perform regularly.
Pep Guardiola’s brother, Pere, represents Thiago but it is thought that the ex-Barca coach has expressed no desire to take him to Bayern Munich.
Would City or United be a good move for Thiago Alcantara? And would he flourish in England?
Tell us what you think below!
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