Sir Alex Ferguson confirmed Manchester United have turned down a bid from Real Madrid for Ruud van Nistelrooy.
Ferguson also revealed that United made an offer for Tottenham midfielder Michael Carrick that was rejected.
"There is no agreement with Real and United over Ruud. We have refused their offer," said the United boss.
"We are trying to sign another central midfielder. We have made a bid for Michael Carrick but Tottenham Hotspur turned it down."
Reports suggested that Van Nistelrooy was set to put pen to paper following a medical on Wednesday, but it is believed that Real did not get close enough to United's £15m valuation for the 30-year-old striker.
Ferguson admitted last week that Van Nistelrooy had informed the club that he wanted to end his five-year stay at the club.
Van Nistelrooy fell out with Ferguson and found himself out of favour at the end of last season and there were also reports that he had a disagreement with United winger Cristiano Ronaldo.
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The Dutchman was left out of the side for the League Cup final and talk of a rift between the forward and the manager escalated when Van Nistelrooy left the ground before United's final game of the season.
Spanish-based journalist Graham Hunter told BBC Five Live Sport that Real will be looking to get United to lower their asking price.
He said: "It's very clear that Ruud van Nistelrooy is unhappy at Old Trafford - unhappy with the behaviour of Cristiano Ronaldo and unhappy with his relationship with Sir Alex Ferguson.
"And it is him that says he wants to leave so that always makes the buying club feel secure in haggling the price down.
"There are also strikers moving from Italy in (David) Trezeguet and (Zlatan) Ibrahimovic so the market does have this inward flush of slightly underpriced talent - so it is a buyer's market."
Van Nistelrooy's agent has been quoted as saying the Dutch forward is keen to move to Madrid.
And new Real boss Fabio Capello has also stated his admiration for a player who has scored 150 goals in 218 appearances since joining United from PSV for £19m in 2001.