Manchester United and Chelsea are on red alert after Bayern Munich withdrew their contract offer to fullback Philipp Lahm.

The 24-year-old had been unable to agree an extension to his current deal with the Bundesliga leaders which expires in June 2009.

A statement on Bayern's official website read: "The talks between Bayern and Philipp Lahm about an early extension to his contract have not led to an agreement.

"The record champions therefore on Tuesday withdrew their original offer."

Lahm has revealed he is keen for a move away from the Bundesliga.

He added: "I stand by my decision; my career plan allows that I will leave Bayern at some point, and not only when I have passed my peak.

"I played for two years at Stuttgart and I am now in my third year of playing for Bayern, the best team in Germany.

"Therefore it is the logical next step to move abroad."

Along with Chelsea and United, Barcelona are also keen on the Germany international.