Nicolas Otamendi
Real Madrid dropped their interest in Nicolas Otamendi as they believe Manchester United are close to finalising a deal for the defenderGetty

Real Madrid have reportedly pulled out of the race to sign Valencia defender Nicolas Otamendi, as they believe that Manchester United have already reached an agreement to sign the Argentine defender this summer.

According to the Mirror, the Spanish giants believe that the player already has his heart set on a move to Old Trafford and are ready to pursue other targets in the eventuality of Sergio Ramos' departure.

Spanish newspaper AS reports that the Spanish capital club have now turned their attention to Zenit St Petersburg defender Ezequiel Garay, who won the league title in Russia in his first season at the club.

Otamendi's agent Eugenio Lopez has made it clear that his client wants to leave the La Liga club this summer, and revealed that there are offers from various clubs to sign the defender.

"Two months ago Nicolas already told [former president] Amadeo Salvo he wants to leave Valencia this summer. If there's an offer from a club we consider a top club, and it benefits his family, Nico wants to go. There are many discussions with several clubs who want to sign Otamendi," Lopez said in May to Cadena Ser.

Louis van Gaal is keen to bolster his defence despite handing new contracts to Phil Jones and Chris Smalling in recent weeks, and according to AS, the former Bayern Munich manager is keen on signing both Otamendi and Real's Sergio Ramos.

The Spanish defender has been heavily linked with a move to Old Trafford this summer, with former president Ramon Calderon revealing that the defender has asked the club to consider offers from the Red Devils, as he is not keen on moving to any other club.

However, the report claims that the Spanish giants will make a move to sign a new defender only if Ramos leaves the club this summer.