Manchester United boss Sir Alex Ferguson has confirmed the club have turned down a bid from Newcastle United for Ravel Morrison.
As revealed by skysports.com on Thursday, Newcastle tabled a bid for the highly-rated youngster as they look to lure him away from Old Trafford.
Morrison, who has made two first-team appearances in the Carling Cup this season, is out of contract at the end of the season and as yet no new deal has been agreed.
Newcastle have made the first move to sign the skilful attacker with United thought to be willing to listen to offers for the 18-year-old after failing to agree a new contract.
"His agent has been working hard to get him another club," said Ferguson.
"We've offered him terms which he has refused. His demands are unrealistic as far as we're concerned.
"We've rejected an offer from Newcastle. It's all down to how that progresses."