Portugal international Felix would also command a €100m (£86m) option to buy after the Spanish giants set the terms of a possible transfer.
It’s understood that Felix also wants around £5.3m in wages over the remainder of the season, pushing the overall cost of the deal close to the £20m mark.
#MUFC looking at alternatives to Joao Felix with Atletico demanding at least double what the club are prepared to pay to loan Portugal forward. Not abandoned interest but Atleti/Felix/Mendes position would need to fundamentally shift for deal to be done https://t.co/FYHuupZ7Nu— James Ducker (@TelegraphDucker) January 2, 2023
United have rejected those terms out of hand and are now looking at alternatives, having told Atletico and Felix’s agent Jorge Mendes that the deal would have to be substantially cheaper before they would consider returning to the negotiating table.
Arsenal and Chelsea have also expressed an interest in the 23-year-old - who cost £113m when he moved to Spain from Benfica in the summer of 2019 - but would be unlikely to meet Atletico’s demands.
United are in the market for a forward in the January transfer window to replace Felix’s Portugal teammate Cristiano Ronaldo, another high-profile client from the Mendes camp.
Having spent a club record £220m on new signings in the summer, Ten Hag has to work on a tighter budget which has also been affected by the uncertainty over United’s ownership after the Glazer indicated a willingness to sell the club.
Sources say there are no live discussions at the moment and that is unlikely to change unless the Spanish club alter their stance.
Do you think Joao Felix is worth potentially 20 million just to loan for the rest of the season?
Answer in the comments below.