Manchester United transfer target Hakan Calhanoglu is reportedly on the verge of signing a new deal with AC Milan.
The news will be a blow to Ole Gunnar Solskjaer's side after it was thought United were weighing up a swoop in the January transfer window.
Attacking midfielder Hakan Calhanoglu has scored five goals and five assists so far this season for Milan, who are top of Serie A after an unbeaten start to their league campaign.
The Turkey international's contract is due to expire at the end of this season, and United were said to be targeting a pre-contract agreement with him next month.
However, according to reports from Italy, the 26-year-old is now close to signing an improved contract with Stefano Pioli's side.
Calhanoglu's representatives are set to fly into Milan on Wednesday to meet San Siro chiefs, according to Football Italia.
The publication reports that the two parties have edged closer to an agreement after Calhanoglu lowered his wage demands.
He currently earns around €3.5million (£3m) a year, and Calciomercato has previously claimed that he wanted his salary bumped up to €6m (£5.4m).
However, the Italian outlet has this week reported that Calhanoglu may be willing to accept to a more modest increase to €4.5m (£4m) per season.
He has played every league game so far this season for Milan, whose strong run may have been a factor in his decision, with the Rossoneri three points clear of Inter at the top of Serie A.
They are on course for next season's Champions League, having won eight and drawn three from their 11 league games so far this season.
And they could meet United in the Europa League, having reached the last 32 of the competition after topping their group.
Solskjaer's side dropped into the Europa League following last week's Champions League defeat to RB Leipzig.
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