Manchester United have lost out to Bayern Munich in the race to sign Basel starlet Xherdan Shaqiri.

The Switzerland midfielder has snubbed the chance of joining United in favour of securing a move to the German giants.

Shaqiri was instrumental in dumping United out of this season's Champions League and Sir Alex Ferguson was keen to lure him to Old Trafford in the summer.

However, Bayern have struck a £10m deal for the 20-year-old that will see him join them ahead of the start of next season.