Manchester United manager Sir Alex Ferguson has admitted that the club are in talks with striker Danny Welbeck over a new contract.

There have been suggestions that the England international could leave Old Trafford after failing to agree terms on a fresh deal, but reports emerged today claiming that progress had been made over a new deal.

"We are negotiating with Danny's brothers," Ferguson told the Press Association. "They represent him. It's difficult to say where we are with that at this moment in time."

Welbeck netted nine goals for the former Premier League champions in the top flight last season.