Manchester United hold talks with PSG over midfielder Manuel Ugarte

Manchester United have been in contact with Paris St-Germain about signing the midfielder Manuel Ugarte.

PSG sources claim that a formal bid has been rejected as it fell significantly below their valuation and other clubs – including some from the Premier League – are interested.

However, United insist that there has been just initial interest in Ugarte and only exploratory talks have taken place so far.

It does seem that PSG’s asking price for the 23-year-old Uruguayan is in excess of what United are currently prepared to pay.

United are weighing up whether to make what they would consider a formal offer or if they should move on to other targets.

Ugarte is expected to leave PSG this summer. He made 34 appearances but lost his place in the team towards the end of the campaign.

Ugarte signed for PSG for more than £50 million last summer from Sporting, agreeing a five-year contract, and the French club would expect to recoup their fee. There is also interest in Ugarte from Italy.

The defensive midfielder is part of Uruguay’s squad for the Copa America and has been named in their starting line-up.

United are looking to reshape their under-performing midfield with Casemiro expected to leave. There is interest in him from the Saudi Pro-League, led by Al-Nassr, which is being encouraged.

Ugarte would be regarded as a direct replacement while Christian Eriksen’s Old Trafford future is also in doubt, with him having been out of the team. Sofyan Amrabat is due to return to Fiorentina after his unsuccessful loan spell.

United are also in the market for a central defender and a centre-forward during this transfer window. They have agreed personal terms with Jarrad Branthwaite and have bid up to £43 million, which is way below Everton’s £70 million valuation.

They have also been trying to negotiate a deal for Dutch striker Joshua Zirkzee who has a 40 million euro (£33.8 million) release clause in his contract with Bologna.