Arsenal signed Ozil for a club record €50 million in the afternoon.
Punto Pelota says Real had hoped for an auction also involving United, which had offered to match Ozil's €5 million-a-year Real wages. Arsenal are signing Ozil for €7 million-a-year.
United were expected to also bid for Ozil yesterday, but ended their pursuit and turned attention to Herrera.
But the Premier League champs failed to agree a fee with Bilbao for the youngster before last night's deadline fell.
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