The Spain international has less than a year remaining on his contract and is seeking a fresh challenge having spent the last seven year in Bavaria, playing a lead role in Bayern’s continued dominance of the Bundesliga.
Thiago starred in last month’s Champions League final victory over Paris Saint-Germain and despite his world-class status, Liverpool have been able to sign the former Barcelona star relatively unopposed.
According to ESPN, Manchester United made contact with the Italian-born midfielder’s representatives but were taken aback by his £200,000-a-week wage demands and opted to look at alternative options to strengthen their midfield.
United have subsequently signed Ajax’s Donny van Beek in a deal worth considerably more in terms of a transfer fee, at a total cost of £40m, but the Netherlands international is six years younger than Liverpool’s impending new arrival.
It is not the first time United have missed out on the signing of Thiago after they also passed up the opportunity to bring him to Old Trafford in the summer of 2013.
Sir Alex Ferguson had already set the wheels in motion before he decided to step down at the end of the 2012/13 season but his successor David Moyes decided against sanctioning a deal on account of him not knowing enough about a player who was already a first team player at Barcelona.
Borussia Dortmund are, however, refusing to budge on their £100m valuation of the England international and although United have drawn up a list of alternatives, United missed out on Jack Grealish, who signed a new deal with Aston Villa earlier this week, while Gareth Bale is destined to return to Tottenham on loan from Real Madrid.
Solskjaer also wanted to sign a new left-back but Sergio Reguilon now looks likely to follow Bale to north London having impressed against United for Sevilla in last season’s Europa League semi-final.