Manchester United are in talks with PSG over midfielder Manuel Ugarte

Manchester United have made contact with Paris St-Germain over the signing of midfielder Manuel Ugarte.

PSG sources claim a formal offer has been rejected as it fell significantly below their valuation, and other clubs – including some in the Premier League – are interested.

However, United insist there was only initial interest in Ugarte and only exploratory talks have taken place so far.

PSG’s asking price for the 23-year-old Uruguayan is reportedly above what United are currently prepared to pay.

United are considering whether to make what they would consider a formal offer or whether they should move on to other targets.

Ugarte is expected to leave PSG this summer. He made 34 appearances but lost his place in the team towards the end of the campaign.

Ugarte signed for PSG for more than £50m last summer from Sporting, penning a five-year deal and the French club would expect to recoup his fee. There is also interest in Ugarte from Italy.

The defensive midfielder is part of Uruguay’s Copa America squad and has been named in the starting line-up.

United are looking to overhaul their underperforming midfield, with Casemiro expected to leave. There is interest in him from the Saudi Pro-League, led by Al-Nassr, which is encouraging.

Ugarte is believed to be a direct replacement, while Christian Eriksen’s future at Old Trafford is also in doubt with him out of the squad. Sofyan Amrabat is set to return to Fiorentina after his unsuccessful loan spell.

United are also in the market for a centre-back and centre-forward in this transfer window. They have agreed personal terms with Jarrad Branthwaite and bid up to £43m, which is well below Everton’s £70m valuation.

They have also tried to negotiate a deal for Dutch forward Joshua Zirkzeem, who has a €40m (£33.8m) release clause in his contract with Bologna.