United pulled the plug on a deal for the Athletic Bilbao midfielder last night after deciding not to meet his £31.5 million buyout clause.
United manager David Moyes rates Herrera highly and wants to bring the Spanish youngster to Old Trafford, but not at Bilbao's valuation.
The Premier League giants will attempt to talk down Bilbao's asking price in the coming months ahead of a deal in January.
At the end of this season, the buyout clause in Herrera's current deal jumps to £36 million.
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