Manchester United have reportedly accepted defeat in signing Bayern Munich midfielder Toni Kross in the summer.
David Moyes' side were keen on bringing the German international to Old Trafford in the January transfer window. However, the deal did not take shape as United signed Juan Mata from Chelsea for a club-record fee of £37.1m earlier this year.
Despite Mata's addition to the squad, United were still believed to make an approach for Bayern star in the summer, whose contract is set to expire at the end of the next season. It was reported that Kross is desperate to make a switch to Old Trafford in the summer.
According to the Guardian, United have been made aware that the 24-year-old will continue with the European and German champions beyond this season. The Red Devils were knocked out by Bayern in the quarter final of the Champions League, 4-2 on aggregate.
The report claims that United will face tough competition in landing Kroos, if he decides to leave Allianz Arena in the summer. Without Champions League action, it would be difficult for Moyes to convince the midfielder join him at Old Trafford.
United are seventh in the league table with 57 points from 33 games, trailing fourth place Everton by nine points. They are aware that signing top class players in the summer would be difficult, especially if they miss out on Europe's elite club competition.
Kroos' agent Volker Struth has admitted that his client will stay in Germany till his contract expires.
"We are confronted with a variety of rumours for months but at the moment I believe that Toni plays in Bavaria until 2015 at least," Struth told the German newspaper Bild.
The club is preparing for a summer clearout, which will see 10 players leave Old Trafford after the end of the season. With United set to miss out on Kroos, it will be a major blow for Moyes as he set his sights on rebuilding the squad in the summer.