Varane's agents have told the Spanish club of his intention to seek a new challenge, according to Laurie Whitwell of The Athletic. He is hesitant to sign a new contract with Real Madrid and is considering moving to Manchester United.
According to Fabrizio Romano, United is now in 'direct contact' with Madrid to negotiate the transfer of money after reaching an agreement on personal terms.
The team will make an offer once they get more information on Varane's contract status.
According to The Athletic, Madrid is demanding "much" more than United is willing to spend.
The Spanish club may finally accept a sum in the area of £40 million to £45 million as they seek to recoup their losses from the pandemic.
Other teams, such as Paris Saint-Germain, have expressed interest, but negotiations have stalled.
The French club has plenty of options in central defense after signing Sergio Ramos on a free transfer, so a move for Varane is unlikely.
Man United can now concentrate on getting the Varane deal done, with Jadon Sancho's official announcement on the horizon.
United requires a world-class defensive partner for Harry Maguire.
Varane is a seasoned winner who has claimed every major trophy in Spain, including four UEFA Champions League crowns.
According to Whitwell, Man United has been scouting the Frenchman since Sir Alex Ferguson's tenure and sees him as a quality addition to their squad.
Sources close to the deal believe the 28-year-old will eventually end up at Old Trafford, although nothing is imminent.