Report: Man United and Liverpool miss out; Danilo agrees Spanish switch

Brazilian right-back Danilo and FC Porto have reportedly agreed a deal with Real Madrid, leaving Manchester United and Liverpool forced to look elsewhere.

Danilo, a man linked with Manchester United and Liverpool by the Daily Express and currently one of the most coveted right-backs in Europe, is all set for a move to Real Madrid in the summer, according to Spanish TV network La Sexta (via Marca).

Officials from FC Porto and Real Madrid have been locked in talks over the last week, as the reigning European and World champions sought to seal a deal which is expected to cost Los Blancos €20 million, which is much less than the Portuguese side were hoping for, having initially demanded around €40 million.

Financial struggles and an urgent need to pay reported debts of beyond €25 million mean FC Porto need to sell a player or two before the summer in an effort to balance the books. Danilo's refusal to pen fresh terms has also been crucial, with the player out of contract in 2016 and his side fearing the possibility of him leaving without them making anything at all.

The desires of Danilo have been an important factor in the choice of destination. Despite the wealth of interest from Premier League clubs, his sights have been firmly set on staying within the Iberian peninsula, hopping over the border to Spain and moving to the Santiago Bernabéu.

This willingness on the part of the player led Real Madrid to swiftly ensure they sealed a deal, thus fending off the interest from elsewhere. According to the reports from Spain, all parties have reached verbal agreements to complete the move, with just the signing of contracts remaining.

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