Sao Paulo, who were in pursuit of Lucas Moura, have chose to end the chase, with reports in Brazil claiming the winger is only contracting with United if he were to leave his current side Paris Saint Germain.
That could work in Liverpool's favour with the club still in Europe's biggest club competition.
Moura has played just 71 minutes in the league for PSG and, so drastically has his stock fallen, he is not even cup-tied for the Champions League.
The PSG winger was understood to be heading to Old Trafford this month with Telefoot claiming Jose Mourinho has convinced United to act now to sign the Brazilian and ensure they don't miss out in the summer.
Meanwhile, Manchester United are now on a warm-weather training camp in Dubai ahead of their Premier League clash with Stoke at Old Trafford on Monday night.
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Following the overwhelming performances PSG showcased in the summer window, spending £202m on Neymar and being obliged to spend £166m for Mbappe next summer, the club faces the likelihood of UEFA sanctions. Capable of playing on either side of the pitch, Moura will also bring versatility, pace, and dynamism to the Manchester United attack.
Le Parisien report they are holding firm on their €40m valuation of Moura to help reach that target, despite the fact he has failed to start a single league match this term and has entered the final 18 months of his contract in the French capital.
Lucas Moura, at his best, can simply tear apart opposing defences with his pace, dribbling skills and trickery.
According to sky sportsManchester United are interested in Moura but have made no formal approach.