Jose Fonte has decided to stay at Southampton.
Jose Mourinho wanted the Portuguese centre-back to add competition for places at the heart of the United defence and had lined up an £8 million bid.
However, after holding talks with Southampton director of football Les Reed and chairman Ralph Krueger, Fonte will now stay at St. Mary's.
And the 32-year-old is set to land himself a significant pay rise, moving from £45,000 a week to £70,000.
Saints manager Claude Puel said: “The situation of Jose is now finished and he is back to normal.
"Jose is now concentrating just on his football and his team. He had a good discussion with the director of football, with the chairman and now everything is all OK.
“For Jose it was important for us, for me, to keep him in the squad because he is a good personality, a good professional and has good leadership qualities.
“It was important to listen to Jose and understand his position and have time to speak – but now is the time to play and there is no problem with this.”