Express Sport revealed in April that United and City were set to do battle for the in-demand Benfica forward at the end of the season.
The Manchester giants’ interest in the wonderkid is mirrored by that of top-six rivals Arsenal, Chelsea, Liverpool and Tottenham.
All of the Premier League’s big guns have sniffed around Felix, who has been tipped to follow in the footsteps of Portuguese compatriot Cristiano Ronaldo.
However, it seems Manchester United and co. are set to be left disappointed if the 19-year-old follows the advice of his agent.
The Mirror report Jorge Mendes, known for his dealing with United in the past, is eager for Felix to head to Atletico Madrid.
Mendes is said to see the Wanda Metropolitano as the ideal place for Felix to continue his development next season.
Diego Simeone is in charge of Atletico and Mendes is in favour of his client playing under the Argentine rather than being drawn to the Premier League for the money.
Manchester City have plenty of cash at their disposal to throw at Felix, with a £100,000-a-week five-year deal said to be on the table.
Pep Guardiola has identified the fleet-footed ace as a potential replacement for Bayern Munich target Leroy Sane.
Atletico, though, have money coming in with Lucas Hernandez on his way to Bayern Munich and Antoine Griezmann poised for a £106m exit.
So they could be prepared to spend big in order to make Felix the talisman of their new-look side next season.
Felix is currently in Ibiza as he ways up where his future lies beyond the summer, with Benfica chief Luis Filipe Vieira admitting he is set to leave.
“We sit down with players and they say: ‘President, I can earn five million euros, president, do not make me stay here,'” Vieira said.
“Joao Felix had a release clause of £53.4m and we realised after two or three games that we must increase it to £107m.
“But it is Joao Felix and his family who will decide if he stays. If someone bids £107m it is not worth dreaming that he will stay.
“We are trying everything to ensure he stays. But the only way is if we sell him and keep him another year.
“If not, Joao leaves. There is no room to negotiate further. He doesn’t want to.
“How will Benfica negotiate with someone after he is given a proposal of £5.34m after tax?”
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