Manchester United are making progress in their bid to sign Real Madrid star Luka Modric, according to the Daily Star.

The newspaper also suggests David Moyes is planning an improved offer for Everton duo Leighton Baines and Marouane Fellaini.

A United source told the Daily Star: "United won't just give up on this deal and will go back with a higher bid.

"The club are confident of getting this done. These two players have been targets for a while and are seen as key ingredients to the future success of the team.

Moyes has previously said that he was confident of making signings before the transfer window slams shut on September 2 - after missing out on summer transfer targets such as Cesc Fabregas and Thiago Alcantara.

However Manchester United's recent bid of £28million for Baines and Fellaini was rejected - which the Merseysiders said was 'derisory and insulting'.

Moyes has made signing a central midfielder his number one priority after the recent retirement of Paul Scholes.

The former Everton boss is also extremely short in the engine room due to fellow Scotsman Darren Fletcher's stomach illness.

Manchester United have so far only managed to sign Uruguayan full-back Guillermo Varela - who is likely to be involved in the Red Devils' development squad rather than their first-team this season.

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