Manchester United and Manchester City are reportedly out of the running to sign Michael Olise, with the Crystal Palace winger now expected to join Bayern Munich this summer.

Olise, who is considered one of the Premier League's most promising young attackers enjoyed a successful 2023-24 campaign with the Eagles, scoring 10 goals and six assists in 19 appearances.

Owing to his impressive performances, the 22-year-old has been linked with a host of clubs in recent weeks, including both Manchester outfits as well as Chelsea.

The Blues had even received permission from Palace to negotiate with the 22-year-old but ultimately decided they could not meet the financial terms of the deal.

The talented young Frenchman bagged a brace for Palace when they beat the Red Devils 4-0 at Selhurst Park last month.

Manchester giants miss out on Olise signature

However, all three English teams are set to miss out on signing the in-demand 22-year-old, who is now on the verge of confirming a move to German giants Bayern Munich, as reported by The Mirror.

The report adds that both United and City had tried to agree a deal to sign Olise at the last minute but were only willing to do so at the end of next season due to financial fair play restrictions.

It is understood that the Frenchman has a release clause of £60m built into his contract at Selhurst Park, which created an issue for the Manchester clubs.

Olise signed a new deal with Palace last season, which meant that the club were unwilling to budge on their asking price.

Pep Guardiola has been a longtime admirer of the Frenchman but the Citizens are walking a tightrope with their finances and will need to sell a few players before big-money acquisitions can be made.

United, on the other hand, are rumoured to be working with a limited budget this summer, and as a result, were unwilling to shell out what would be their entire transfer kitty on a single player.

The Red Devils are in need of several reinforcements this summer, including a new centre-back, along with a new left-back, central midfielder and a striker.

Kompany set to make Olise his first signing as Bayern boss

Bayern, now under the leadership of ex-Man City captain Vincent Kompany are expected to be busy this summer following their first trophyless season for 12 years.

Kompany arrived at the Allianz Arena at the end of last season, following the departure of Thomas Tuchel and Burnley's relegation from the Premier League.

If the deal for Olise goes through without issue, it will mark the first signing of Kompany's reign in Bavaria.

Olise's contract extension at Selhurst Park last year saw his wage bumped up £100,000 per week, making him one of the highest earners at Palace.

However, it is understood that Bayern are set to agree final terms on a £200,000 a week contract with the player in the next few days.

The Frenchman will also have the opportunity to play in the Champions League next season alongside Harry Kane, who joined the German powerhouse at the start of last season.