Manchester United are keeping tabs on Wigan Athletic winger Luis Antonio Valencia.

The Mirror says Real Madrid tabled a £12million bid for Valencia last night - and were told to increase it to £18m.

Latics have a complication in the transfer talks as they owe Valencia's former club Villarreal a sizeable slice of the profit over the £5m they paid for him.

Chairman Dave Whelan is holding out for £18m, and news of Real's move will also alert Manchester United.

Reds boss Sir Alex Ferguson has asked for first option on Valencia and will want to know the price if one is agreed.