Manchester United are understood to have made an opening offer of around £45million for Everton and England centre-back Jarrad Branthwaite.
Everton have been insistent the 21-year-old is not for sale but there is recognition that a huge offer would have to be considered against a backdrop of financial uncertainty.
Everton said they had had no contact from United this morning but the Old Trafford club have now made their first proposal as they look to instigate negotiations.
United's offer is likely to be rejected but their move to sign the left-sided defender is underway.
Manchester United have made an offer of around £45million for Jarrad Branthwaite
Branthwaite was a surprise omission from the final Euro 2024 squad despite Harry Maguire being left out
Sir Jim Ratcliffe and Co are plotting how to strengthen the Man United squad this summer
United are trying to make him their first summer signing, but must be wary of Financial Fair Play rules.
It is expected that negotiations for the England man may take time and won't be straightforward.
Elsewhere, Jean-Clair Todibo of Nice, the other club INEOS own, remains an option as another centre-back signing this summer, while Bayern Munich defender Mathijis de Ligt has also been linked.
Their transfer budget will depend on outgoings, with a number of players, including Mason Greenwood, set to leave the club.
Signing a centre-back is a priority for Erik ten Hag, with Raphael Varane leaving and Lisandro Martinez dealing with a number of injury issues last season.
Branthwaite impressed for Sean Dyche's side in a breakout campaign and was rewarded by an England call-up to Gareth Southgate's provisional Euro 2024 squad.
It was then a surprise that the left-footed central defender missed out on final selection, particularly given the absence of Harry Maguire, who was left out having failed to recover from injury.
Branthwaite (right) is one of the most sought-after young talents in football
Everton want to keep hold of Branthwaite, while Erik ten Hag is keen to strengthen his defence
Branthwaite is a physical presence and assured on the ball but Brighton's Lewis Dunk was ultimately given the nod to go to Germany.
It remains to be seen how far United will push their valuation, given Everton's insistence that it will take a mega offer to prise away their top asset.
Branthwaite still has a contract until 2027 having signed fresh terms last year, putting the Toffees in a strong negotiating position.