Manchester United face a new battle with Real Madrid.

Real Madrid are threatening to hijack Manchester United's bid to sign Karim Benzema from Lyon.

The Spanish giants are ready to turn to the France striker after being frustrated in their attempts to sign David Villa from Valencia.

Lyon admit they will struggle to hold on to 21-year-old Benzema after the market became inflated by Madrid's lavish spending.

United boss Sir Alex Ferguson is an admirer, but Madrid president Florentino Perez has already twice met Benzema's agent Karim Djaziri, in Madrid and Geneva, according to Spanish newspaper Marca.