The Daily Star says United saw a chance to lure the Ivory Coast international across town to Old Trafford in what would have been a sensational transfer coup.
United bosses let it be known Toure was on their shopping list and were hopeful of pulling-off a £40m deal.
But Toure has told the fallen giants he has no interest in joining his neighbours at United because he is holding out for a move to Paris Saint-Germain instead.
The snub is a blow to new United boss Louis Van Gaal, who is keen to strengthen his flagging midfield.
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