Manchester United have submitted a new bid of £60million for Bayern Munich striker Thomas Muller, according to reports in Germany.

United are reported to be haggling over the structure of a £21.2million deal to sign Pedro from Barcelona and could face late competition from Chelsea, according to reports, but Sport Bild in Germany claims the Red Devils have meanwhile increased their offer for Muller to £60million (85m euros).

The Germany international has been linked with a move to Old Trafford throughout the summer, but Bayern have insisted on several occasions that the 25-year-old will not be sold.

"I can calm all the worries of all Bayern supporters. We will not let another player leave for Manchester United," Bayern CEO Karl-Heinze Rummenigge said.

The Bundesliga champions are also reported to have knocked back an approach from Arsenal for Muller.