Manchester United striker Danny Welbeck is reportedly wanted by Real Madrid following reports the Old Trafford star has reached an impasse over his new contract.

The 21-year-old scored Manchester United's winner against Arsenal on Sunday to ensure his side maintained their admirable Premier League title defence despite a spate of injuries.

Welbeck's eye-catching performance came just days after Sir Alex Ferguson had played down reports of a possible issue regarding the striker's contract, but The People newspaper intimate there are problems between the aforementioned parties, and the striker's future at Manchester United is less clear than his manager suggested.

"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."

Regardless of Ferguson's comments, The People claim Welbeck's form for Manchester United has been closely monitored by representatives from Real Madrid this season. The La Liga giants allegedly watched five games involving the Premier League champions in the month of December and although no official contact has been made, there is a suggestion the England international is one of the names being considered by Jose Mourinho.

While negotiations with Welbeck remain on-going, Real Madrid's interest in emerging Manchester United youngster is likely to remain, according to The People.

Welbeck has enjoyed a hugely impressive few months at Old Trafford, having returned from a successful season-long loan at Sunderland in the summer. The Manchester United star is an emerging force for club and country and is believed to be demanding a weekly deal in the region of £60,000.