Dinamo Zagreb have rejected an offer from Real Madrid for Manchester United target Alen Halilovic.

The teen spoke only last week of interest from United.

But TMW says it was Real who made the opening move for Halilovic, offering €5 million for the midfielder - which was immediately rejected by Dinamo.

United manager Sir Alex Ferguson rates the youngster highly, though could face competition from Real AND Arsenal in January, with local sources suggesting Arsene Wenger is also keen.