Man Utd circle as Real Madrid fail to clinch Canales agreement

Real Madrid failed to clinch a deal for Racing Santander midfielder Sergio Canales last night.

AS maintains the two clubs have settled on a €5 million fee for the 18 year-old, with the only difference being whether Canales will play on-loan with Racing next season.

However, in England, Manchester United are being linked with a move for the exciting midfield prospect.

United boss Sir Alex Ferguson has already met with Canales' father and given him a tour of the club's facilities. Unlike Real, United can secure Canales on an immediate pre-contract.

Canales Snr is expected to meet with Real chiefs Florentino Perez and Jorge Valdano on the weekend.