MANCHESTER UNITED are to abandon their pursuit of Dimitar Berbatov as a result of continuing conflict between Sir Alex Ferguson and the Tottenham chairman, Daniel Levy, and the exorbitant transfer fee Spurs are demanding for their striker.

United have been quoted a price of £38m for Berbatov and having seen a £20m bid rejected feel there is little scope to negotiate a reasonable compromise with Levy, who provoked a war of words with Ferguson when he branded him “arrogant” and reported United to the Premier League last week. Relations between the clubs, and Ferguson and Levy particularly, have only worsened over the past seven days and Ferguson is now exploring other possibilities, with Samuel Eto’o, Roque Santa Cruz, David Villa and Karim Benzema under consideration.

This may leave Levy pondering the wisdom of his brinkmanship. With United out of the running and Barçalona lukewarm there are no other serious bidders for Berbatov and though Spurs say they want to keep the player, Juande Ramos, their coach, could be left with man-management problems.

Berbatov has his heart set on a transfer and, a complex personality at the best of times, will require serious motivating if, having remained at White Hart Lane, he is to perform at his best. Tottenham confronted similar issues with Berbatov last season, when Levy’s refusal to accept a £25m offer from United left the Bulgarian in tears and his poor form during the first part of the season – he scored only four league goals before Christmas – was a factor in his team’s disastrous start to the campaign.

It is thought United would be willing to pay £25m if dialogue between Old Trafford and White Hart Lane could be reestablished but that Ferguson is pessimistic about that prospect and is pondering whether to play Wayne Rooney as his main striker next season.

Ferguson is more confident than ever about keeping Cristiano Ronaldo, who he revealed is holidaying in Los Angeles with his blessing and with a club chaperone for company. Real Madrid are exploring a move for Villa, seen in Spain as an admission they cannot now sign Ronaldo.