Manchester United's hopes of signing Benfica midfielder Nicolas Gaitan appear to have taken a hit, with the Argentine international set to sign a new deal with the Portuguese club.

Gaitan was heavily linked with a move to Old Trafford during the summer transfer window, but a deal never came to fruition.

Portuguese publication A Bola is reporting Gaitan is set to be rewarded for his loyalty to Benfica with a new deal that will significantly increase his wages.

It is understood the player's agent Jose Iribarren is set to arrive in Lisbon next week to put the finishing touches on his client's new contract.