Manchester United have been handed the opportunity to sign Shakhtar Donestk midfielder Fred.
The Brazilian was a prime target for Manchester City.
Shahktar chief executive Sergei Palkin confirmed on Tuesday that both clubs held an interest in the 25-year-old.
But The Times claim City have retracted their interest.
This leaves Jose Mourinho a chance to sign the midfielder he so desperately seeks.
Fred has 6 caps for his country and is likely to make Tite's final squad for June's World Cup.