Manchester United have suffered a transfer blow in their pursuit of Borussia Dortmund winger Jadon Sancho.

The Times says United were leading the Premier League race for Sancho, ahead of Liverpool, Chelsea and Arsenal.

But Sancho's advisers insist the 20-year-old favours a move to Real Madrid or Barcelona.

The two La Liga heavyweights would have the financial muscle to battle United for the England international.

Sancho will likely cost over £100million, three years after he left Manchester City for £8m.

United boss Ole Gunnar Solskjaer yesterday admitted his side were still working on getting deals over the line.

But they may have to pursue other targets if Sancho opts to snub a move to Old Trafford.