Manchester United would rather let David de Gea leave the club on a free transfer than let him leave for only £20m ($31.5m) this summer, according to the Daily Mirror.
Real Madrid have been heavily linked with a move for the player, with the Spaniard having already told his teammates that he prefers a move to Madrid over staying at Manchester this summer. However, Madrid are unwilling to match United's £35m ($55m) valuation of the player, stating that with only a year left in his current contract, his value in the market has gone down.
The Red Devils are unwilling to listen to any arguments and have given Madrid an ultimatum regarding the transfer, which is likely to carry on till late in the transfer window. Madrid have retaliated by dismissing United's £35m ($55m) bid for Sergio Ramos, who is also being linked with a move out of the club after getting involved in a contract stand-off with the club.
The defender has two years left in his contract but Madrid's president Florentino Perez is unwilling to hand the 29-year-old the third highest contract at the club behind Cristiano Ronaldo and Gareth Bale. United do not have any such inhibitions and are believed to have offered him a contract on the same lines as Wayne Rooney.
Besides his defending, Ramos also adds to the goal-scoring threat, with the player being the highest scoring defender in Europe's top five leagues over the past decade.
United are looking to broker a deal involving a swap of the two players, which would suit both parties. However, Madrid are unwilling to relent and will dispel any bid made for the defender this summer.
The Red Devils are ready to back Louis van Gaal with a massive transfer kitty this summer, with the Dutchman looking to add quality in defence, midfield and in attack. The Mirror reports that they are close to completing a deal with Southampton for Morgan Schneiderlin, having already signed Memphis Depay from PSV Eindoven earlier in the window.