Manchester United have ruled out entering a bidding war with Manchester City for Nottingham Forest midfielder Elliot Anderson, according to sources familiar with the club’s transfer plans.

United have monitored Anderson for an extended period and identified the 23-year-old as a leading candidate to spearhead a major midfield overhaul in the next window. His emergence as a key figure for club and country has made him one of the most coveted young midfielders in Europe.

Nottingham Forest, however, are understood to value the England international at around £120 million, a figure United regard as excessive. City are also interested, and United’s hierarchy are determined not to be drawn into an auction that could push the fee even higher.

Club sources indicate that United intend to operate within a stricter financial framework, both on transfer fees and wages. The plan is to fund a marquee midfield signing largely through player sales, expected to generate between £80m and £90m, preserving most of the remaining budget for a second midfielder, a left winger and potentially a centre-back or full-back.

Forest believe their valuation is justified. Anderson is tied to a long-term contract at the City Ground until 2029 and is expected to play a prominent role for England at the World Cup. Their stance is also shaped by recent market precedents, notably Moisés Caicedo’s £115m move from Brighton to Chelsea, which has reset expectations for elite young midfielders.

United’s recruitment strategy is also influenced by a revamped wage structure. High earners such as Casemiro, Marcus Rashford and Jadon Sancho are all expected to depart, and executives are intent on preventing a repeat of previous eras when salaries spiralled beyond sustainable levels.

That approach has already had consequences. United believed they were in a strong position to sign Bournemouth winger Antoine Semenyo in January, but cooled their interest once his representatives opened talks with Manchester City, wary of being dragged into another financial arms race.

Should Anderson prove unattainable, United have compiled a shortlist of alternatives, including Carlos Baleba, Aurélien Tchouaméni and Sandro Tonali. There has been no formal contact with Atalanta over Brazilian midfielder Éderson, though Atlético Madrid are understood to have made an enquiry to the Serie A club.