Athletic Bilbao have announced that they have turned down an offer of around £29m from Manchester United for midfielder Ander Herrera.
The 24-year-old was widely expected to move to Old Trafford this week after reports emerged claiming that the Spaniard had completed a medical in Manchester on Monday.
Despite reports stating that the former Premier League champions had agreed to pay Herrera's release clause, which is said to be in the region of £30m, Bilbao have confirmed that United have been knocked back in their advances.
The La Liga side, who finished fourth last season, confirmed the news via their official Twitter page.
Herrera was linked with a move to United last summer under former manager David Moyes, but the two parties reportedly failed to agree a fee.
New manager Louis van Gaal is yet to seal his first signing at United.