Manchester United To End Interest In Gremio's Douglas Costa - Report

Manchester United manager Sir Alex Ferguson could be ready to end his interest in Gremio sensation Douglas Costa because of fears surrounding his private life.

United have been monitoring the progress of the 18-year-old for some time, and were thought to be readying an offer for the player earlier in the summer.

Ferguson declared that the spending at Old Trafford to have come to a close, however, after the signings of Antonio Valencia, Michael Owen, Gabriel Obertan and Mame Biram Diouf.

The News Of The World is now reporting that Costa was arrested by Brazilian police earlier this week for driving without a valid license.

The UK tabloid also states the midfielder has been criticised by coaches at Gremio in the past for turning up late for training and leading a party lifestyle, despite the fact he does not drink.

Such revelations, coupled with the Red Devils' unwillingness to activate a buy-out clause in Costa's contract, thought to be set at £18 million, could bring and end to any possible move in the near future, according to the Sunday newspaper.

Manchester United battle Chelsea in chase for £8m Douglas Costa

Manchester United are trying to salvage a deal for the Brazilian Under-21 international Douglas Costa but face competition from Chelsea as they try to persuade his club, Gremio, to lower their valuation of the midfielder.

United are willing to pay an initial fee of £8m for the 18-year-old including various add-ons depending on his success at Old Trafford, but the deal looked to have faltered when Gremio opened talks by demanding £21m. The Premier League champions have made it clear they consider that to be exorbitant but, after several weeks of negotiations, Gremio have now relaxed their stance and the two clubs are attempting to reach a compromise for the latest player to be tagged in Brazil as "the new Ronaldinho".

An already complex series of negotiations has been further complicated by Chelsea's interest while Real Madrid have also been asked to be kept informed and Villarreal have submitted a bid of £6m plus add-ons. Manchester City had also shown tentative interest but have not followed that up with anything more substantial.

The picture is expected to become clearer next weekend when the influential deal-maker Chris Nathaniel travels to Brazil to try to clarify with Gremio exactly what they will accept before reporting back to the player's admirers. United are considered to be in the most prominent position, with the player favouring a move to England, but Chelsea's interest is genuine and it could become a matter of which club is willing to pay the most.

For a deal to Old Trafford to materialise, Gremio will have to accept that United will not pay what they consider to be over the odds for a player who has only just broken into his club's first team. David Gill, United's chief executive, has already informed Gremio that a deal is impossible at the current price. Chelsea, similarly, are not interested unless the players valuation is slashed to a more realistic mark.