Kovacic is regarded as one of the best young players Croatian football has ever produced and, unsurprisingly, the 17-year-old has frequently been linked with a move away from the Stadion Maksimir.
Old Trafford has been touted as a potential destination for Kovacic and, according to Goal.com, Sir Alex Ferguson is keen on the young midfielder.
“Sir Alex has had scouts watching Kovacic regularly and really likes him, but it now seems they won't pay the money to make an acceptable bid,” a source told Goal.com.
This would appear to pave the way for either Manchester City or Tottenham to make an approach of their own for Kovacic, although the Croatia under-21 international said on Monday that he was in no hurry to leave Dinamo.
Kovacic has scored six goals in 36 appearances for Dinamo, and become the second youngest scorer in the Champions League when he netted against Lyon in December.