JJ Gabriel has been dealt a major blow by Manchester United despite the wonderkid effectively confirming his move to Real Madrid.

Gabriel is set to become a Real player in January after a verbal agreement was reached with his camp, who pushed for his exit from United over broken promises.

The 16-year-old told the club that he wished to leave and become a free agent, with United playing hardball.

Man United block JJ Gabriel from playing in competition for Real Madrid

Away from the club's Carrington training ground, Gabriel has spent time training in Barcelona and now Madrid, where he is doing double sessions.

He was stopped in the capital by major newspaper MARCA, posing with the frontpage featuring himself and asking if he could keep the copy.

Gabriel answered, "Obviously Real Madrid" when asked to pick between La Liga's two giants - and told the outlet he wants to win the Ballon d'Or.

But despite the move being allowed to happen int he winter window because of Gabriel having a European passport, his pathway has been impacted in the short-term.

MARCA say that Real want Gabriel to develop in their Castilla side before transitioning into the first-team.

However, he is blocked from featuring in the UEFA Youth League for the Under 19's because his registration with United is still active.

Gabriel debuted in the competition with a hat-trick before it emerged he wanted out at the club.

Man United's offer to JJ Gabriel revealed as club set for small compensation fee

United made attempts to retain Gabriel's services, with it revealed by MARCA that the club offered him a contract extension and promised a box in the new stadium.

But the club were ultimately unsuccessful and will miss out on a substantial amount of money.

Feeling as though he is a £100 million talent, the Red Devils will only receive a minimal training compensation fee rumoured to be £300,000.

That's because of Article 20 on FIFA's Regulations on the Status and Transfer of Players (RSTP) states that a compensation fee is due "when a professional player transfers between clubs belonging to different national associations".

The compensation would be much higher if Gabriel was to move to a Premier League rival as the rules in the English academy system are different.

A fellow Premier League club would be required to negotiate a fee. If that could not be achieved, the Professional Football Compensation Committee tribunal are forced to step in to decide the compensation amount.

Therefore, United would have expected more than a £3 million fee, as well as a 20% sell-on clause in any deal for Gabriel.

In a recent, high-profile example, Liverpool paid Chelsea £2.8 million up front for Rio Ngumoha but also had to pay a further £1.2 million in performance-related add-ons.

Should Ngumoha move on in the future, Chelsea will be entitled to 20% of any future transfer fee.