Atletico Madrid have reportedly rejected Manchester United's opening offer for Joao Felix and issued fresh demands for clubs interested in the Portugal international.

The Red Devils and Arsenal have been linked with the forward, as they seek replacements for Cristiano Ronaldo, who left by mutual consent, and Gabriel Jesus, who is injured, respectively.

The Mirror reports that United have made the first approach to the Spanish club, offering to cover the player's full wages and a £3m loan fee.

The report states that the offer was rejected, with Atletico demanding a £9.5m loan fee and an obligation to purchase the 23-year-old for £70.5m.

The outlet also claims that Erik ten Hag's side have been given the first option on the player, and will be allowed 48 hours to match any offer presented by a rival for Felix's signature.

The 28-cap international has featured in 130 matches under Diego Simeone, scoring 34 times since his 2019 move from Benfica.