Sir Alex Ferguson has confirmed that Manchester United turned down a bid from Newcastle United for youngster Ravel Morrison but admitted that the prodigy has "refused" a deal with the Red Devils.

The prospect is believed to be the reason behind the collapse of talks with the Premier League champions after making "unrealistic demands".

News emerged yesterday that the North West side rejected an offer from Newcastle, who are believed to be willing to pay compensation to United for the winger.

"We have rejected an offer from Newcastle," said Ferguson. "His agent has been working hard to get him another club. We have offered him terms, which he has refused. His demands are unrealistic as far as we are concerned."

The 18-year-old has been involved in some controversy while being at Old Trafford, including charges of witness intimidation, to which he pleaded guilty in court last year.