Liverpool target Thiago Alcantara set to leave Bayern and sign for Manchester United

Manchester United have reportedly moved ahead of rivals Liverpool in the race to secure the signature of Bayern Munich midfielder Thiago Alcantara.

The 29-year-old looks set to leave Bayern Munich this summer as he is unwilling to sign a new contract and targets a new challenge.

CEO Karl-Heinz Rummenigge confirmed that they intend to cash in on Thiago, to avoid losing him on a free transfer next summer.

"We had serious negotiations with him and fulfilled all of his wishes. But it looks like he might want to do something new again at the end of his career," Rummenigge told Bild.

"We don't want to lose a player for free next year. I say that very clearly."

While Liverpool have been most frequently linked with the Spain international, Spanish outlet Sport claimed in something of a throwaway line that he is set to join Manchester United.

While speaking about Thiago's younger brother, Rafinha, the report stated that the Bayern man is 'about to leave Bayern Munich and sign for Manchester United.'

The 29-year-old was close to joining United in 2013, before David Moyes instead opted to sign Marouane Fellaini.

The seven-time Bundesliga champion is reportedly available for just £31 million and wants to test himself in England before calling time on his career.

- TEAMtalk media