Manchester United boss Sir Alex Ferguson has played down fears the club had reached an impasse over Danny Welbeck's contract negotiations.

The 21-year-old has been hugely impressive at Old Trafford in his breakthrough season as a recognised first team regular for Manchester United, but reports earlier in the week suggested the club were alarmed by the England international's wage demands.

Ferguson has refuted the speculation by suggesting Manchester United are aware and in control of Welbeck's future and there no reason for concern.

"There is no issue," The Manchester United manager told Sky Sports when asked about Welbeck's contract negotiations.

"We know the situation well with Danny. There is nothing to worry about there."

Welbeck has scored eight Premier League goals this season and has emerged as increasingly important figure for Manchester United of late.

The former Sunderland loanee has leapfrogged Dimitar Berbatov in the Manchester United pecking order and has broken into Fabio Capello's England setup.

On Thursday it was widely reported that Welbeck was demanding £60,000 a week, which exceeds the current contracts handed out to the 21-year-old's peers Chris Smalling, Phil Jones and Tom Cleverley.

With a year left on his contract in the summer, the Mail suggested Manchester United were fearful they might lose their precocious, Manchester born starlet, but that now appears unlikely.