Winner of the 2016 Golden Boy award, Sanches completed a £30m transfer from Benfica last summer, but has featured in just 17 Bundesliga appearances, averaging a total of 36 minutes each time he wears the Bayern shirt.
Inter Milan are asking for £48.7m (€55m) for the Croatian winger who Jose Mourinho is clearly a big fan of.
The Sun claim that Morata's agent was trying to push through a move to United but Madrid played hardball after rejecting their latest offer worth £70m with the Champions League winners demanding £80m for his signature.
Despite enjoying a brilliant debut season for Los Blancos, he has struggled to make a mark since Zinedine Zidane took charge of the 11-time European champions and is seemingly frustrated with his lack of playing time.
Manchester United are closing in on the signing of James Rodriguez from Real Madrid as per reports from English and Spanish media.
It is unclear at this stage if the Serie A side will agree to do business for that fee.
The Spanish outlet indicates that Madrid have offered the Premier League champions the chance to sign both Morata and Rodriguez for £133m - which is much less than United would have had to pay for two separate transfers.
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