Former Bayern Munich chief Uli Hoeness has hit out at Liverpool and Manchester United.

Hoeness has accused Manchester United and Liverpool of trying to "blackmail" the German giants over their summer transfer pursuit of Thiago Alcantara.

"We offered him a great four-year contract but in the last minute he changed his mind and told us he wants a new challenge," Hoeness told Sport1.

"He probably has an agreement with Liverpool or Manchester United, or with both. 'Both clubs have not come to us with an offer.

"They are bluffing and want to blackmail us by waiting until the last week and then make a cheap offer.

"Bayern must decide whether they want to play this game or stand their ground and keep Thiago."