Felix Nmecha has reportedly reached an agreement with Borussia Dortmund over a new contract until the end of the 2029-30 campaign in a blow to Manchester United.
The 25-year-old's future has recently been the subject of much speculation, with Man United said to be one of a number of clubs keen on his services.
However, according to German journalist Florian Plettenberg, Dortmund have reached an agreement with the central midfielder over a new deal until June 2030.
Plettenberg claims that a 'breakthrough' has arrived in talks with BVB's sporting director Sebastian Kehl, who has been pushing to keep hold of the midfielder.
Nmecha came through the youth system at Manchester City, but he only made three first-team appearances for the Citizens before making the move to Wolfsburg.
Nmecha 'agrees' new contract at Dortmund until June 2030
The midfielder scored three times in 50 appearances for Wolfsburg before arriving at BVB, and he has represented his current side on 108 occasions, scoring 13 goals and registering eight assists in the process.
It is understood that Man United had placed Nmecha on their shortlist for the summer considering his age and performance level.
However, the Red Devils will now seemingly be forced to switch their focus elsewhere, with Dortmund allegedly managing to secure Nmecha's future.
Casemiro's departure from Man United has already been confirmed, with the Brazilian leaving Old Trafford on a free transfer at the end of the season, while Manuel Ugarte is also set to move on, having struggled to make his mark for the English giants.
Man United expected to sign two new midfielders this summer
Man United have allegedly not given up hope of signing Nottingham Forest's Elliot Anderson this summer despite recent reports claiming that Manchester City are firmly at the head of the queue for the England international.
Crystal Palace's Adam Wharton and Brighton & Hove Albion's Carlos Baleba are also regarded as midfield targets for the 20-time English champions.
Meanwhile, Newcastle United pair Sandro Tonali and Bruno Guimaraes are being monitored, with the Red Devils thought to favour Premier League experience.