Manchester United have had a £30m offer for Sao Paulo starlet Lucas Moura rejected, according to the Daily Mail.
The 19-year-old Brazil midfielder is entitled to 20% of any transfer fee, which has increased his value as Sao Paulo look to recoup at least £23.5million for their prize asset.
United were reportedly hopeful that their £30m package would be enough to prise Lucas away from Brazil, but Sao Paulo president Juvenal Juvencio has rejected the offer, according to reports published by Brazilian media company Globo esparto.
Reports suggest United may turn their attention elsewhere, and are prepared to admit defeat after a prolonged chase for the youngster. Jim Lawlor, Manchester United chief scout, was dispatched to Brazil to try and thrash out a deal, but the trip looks to have ended in disappointment.
Moura's 20% arrangement rises to 30% on August 1, which means Sao Paulo will likely quote an even higher figure for the youngster in the future. Any fee could jump up to as high as £40m, a total Manchester United would be unwilling to pay for a relatively untested young prospect.
In Brazil, top players often have contracts which include clauses entitling them to a percentage of any future transfer fee, rather than a signing-on fee as is common practice in Europe.
Lucas Moura is currently in Britain with the Brazil Olympic squad due to compete in London later this month. The highly-rated attacker is set to be one of the standout players on show as Brazil bid to win their first ever Olympic football gold medal.