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Manchester United youngster JJ Gabriel has reportedly rejected an improved offer from Paris Saint-Germain, bringing Real Madrid closer to signing the highly-rated teenager.
The 16-year-old attacking midfielder is understood to be frustrated with his development pathway at Old Trafford and the limited opportunities available under Michael Carrick.
According to Spanish outlet Sport, as reported by Goal, Gabriel and his representatives have informed PSG that their decision remains unchanged despite the French champions improving their financial proposal.
The rejection leaves Real Madrid in a strong position to secure his signature, with the youngster reportedly favouring a move to Spain.
PSG had hoped their ambitious project and reputation for developing young players would convince Gabriel to reconsider.
However, the teenager and his agent, Ali Barat, remain focused on a potential move to La Liga, with Madrid now leading the race.
Barcelona and Bayern Munich previously explored the possibility of signing him but reportedly withdrew after deciding against entering an expensive bidding contest.
Madrid are prepared to offer a package worth more than €10 million (£8.7 million) over three years. The figure represents the proposed overall agreement rather than a transfer fee payable to United.
Gabriel formally requested to leave Old Trafford in September after becoming unhappy with disagreements over his development and first-team prospects.
United had previously refused to provide assurances about his playing time, despite requests from his representatives.
The youngster joined the club’s academy aged 11 and has impressed with his performances, scoring 29 goals in 32 appearances for the Under-18s before joining the senior squad for pre-season.
A potential move abroad remains subject to FIFA regulations, with eligibility before turning 18 dependent on meeting the relevant exemption requirements.
If he leaves, United are reportedly set to receive approximately £350,000 in training compensation, a disappointing outcome given his potential.