Manchester United could be trumped by Manchester City for Benfica winger Angel di Maria.

The News of the World says City agreed to meet Di Maria's £38 million buyout clause last week, but was rejected by the player.

United offered winger Nani and £10m but that was rejected.

Di Maria has indicated he would prefer to join United, but the current financial climate at Old Trafford suggests they will not be able to compete when the summer auction starts.