Manchester United target Shinji Kagawa has opened talks with Bundesliga outfit Borussia Dortmund over a new deal.
The Japanese international midfielder moved to the Signal Iduna Park from J-League side Cerezo Osaka last summer, and has become an instant hit for the German champions.
Sir Alex Ferguson has sent Manchester United scouts to watch the player on a number of occasions, and Die Borussen are keen to ward off interest from clubs across Europe as interest grows in the 22-year-old.
"Shinji Kagawa is able to imagine staying on at Borussia Dortmund. We have even had a first round of talks with Dortmund general manager Michael Zorc with regard to a new contract," the player's agent told Bild.
"Shinji is actually contracted to Borussia Dortmund and he likes the club. He is absolutely looking forward to playing in front of the exciting Signal Iduna Park crowd in the Bundesliga and the UEFA Champions League in the new season."
The news will come as a blow to Manchester United, who are keen to strengthen in the attacking midfield area following the retirement of Paul Scholes at the end of the season.
Tom Cleverley is being tipped as a potential replacement following the youngsters rise through the ranks at Old Trafford, whilst Wesley Sneijder and Luka Modric have also been linked with moves to Manchester United.
Kagawa is another name in the Red Devils frame, and with Ferguson admitting he wants to make three signings back in May, it appears one of the playmakers could follow Phil Jones and David de Gea to Manchester United, presuming the Spanish stopper completes his much anticipated move next month.