But ESPN claims United had the chance to sign Thiago, but did not meet his wage demands.
The 29-year-old wanted roughly £200,000-a-week, and United felt it was too much.
The Red Devils felt Thiago would only move to the club for financial gain, which is not what manager Ole Gunnar Solskjaer wants from his signings.
Thiago could be the most high profile summer signing for Liverpool.
United themselves have only made one move in Donny van de Beek so far.