Manchester United-linked Alphonso Davies has reached an agreement to join Real Madrid, according to the latest reports.

Following Luke Shaw's recurring injury issues, United had been tipped to sign Davies in the past. Coming to the end of his contract at Bayern Munich in the summer, the German club had been trying to tie him down to a fresh deal.

Fabrizio Romano issued an update on X stating Bayern's proposal 'remained' on the table, though the interest from 'several' clubs had delayed the player's decision. But according to the Spanish press (via Team Talk), Real Madrid have has 'reached' an agreement to bring the defender to the Santiago Bernabeu.

READ MORE: Marcus Rashford transfer exit could open door for Man United swap deal

READ MORE: Paul Pogba sent one-word transfer message about Mason Greenwood Man United reunion

Meanwhile, Marca report that Bayern's lucrative offer to keep him at the Allianz Arena was not sufficient with Davies' heart set on a move to the Spanish capital. It's stated that Davies agreed terms with Madrid last summer but decided to remain at Bayern for the remainder of the season.

This way, Madrid avoid paying a fee for his services as he is set to become a free agent in June.

Back in December, Bild journalist Christian Falk claimed United were planning to hold talks with Davies this winter over a pre-contract agreement. However, the lack of Champions League football - and the upheaval at Manchester United was reported to make them a "less attractive" proposition for the left-back.

Davies joined Bayern from Vancouver Whitecaps in January 2019 and has since established himself as one of Europe's best left-sided defenders. He won the Champions League with Bayern during his first full season at the club and has clocked up over 200 appearances, winning nine major trophies during his time in Germany.

In addition to United, their arch rivals Liverpool had also been credited with an interest. Arsenal and Chelsea were believed to be monitoring the left-back's situation in Germany.