Manchester United have suffered a setback in their alleged pursuit of Ilkay Gundogan after the midfielder put pen to paper on a new two-and-a-half-year contract with Borussia Dortmund.
The Daily Mirror reports how the 23-year-old had been heavily linked with a summer move to the Premier League champions, despite missing the majority of the 2013/14 campaign with a recurring back injury.
Red Devils boss David Moyes had been credited with an interest in bringing Gundogan to Old Trafford, and was ready to sanction a player-plus-cash deal amounting to £32million in a bid to secure his signature.
Shinji Kagawa is the player that was tipped to be heading in the opposite direction, returning to the Bundesliga giants just two years after signing for Manchester United.
However, Kagawa's return to Germany will now be placed on hold after Gundogan agreed new terms with Jurgen Klopp's side, effectively ruling out any possibility of a move away from Signal Iduna Park.
"I am very grateful that my club gives me the opportunity to continue to be part of this special team and this very special environment," he told Dortmund's official website after the deal was announced.
"I will do everything to be able to help my team-mates again soon and am very optimistic heading into the coming weeks and months."
Manchester United were aware that Gundogan had been offered a new contract by Dortmund, but were led to believe that the player was seriously considering the prospect of moving when the transfer window reopens in the summer.
Moyes must now turn his attention to alternative midfield targets, as he prepares to begin his overhaul of the first-team squad ahead of the 2014/15 campaign.