The Premier League giants wanted to sign Dembele after it became clear that they would not be able to snare Jadon Sancho away from Borussia Dortmund in the ongoing window.
Manchester United held talks with the player’s representatives and the Frenchman was believed to be prepared to consider the move to Old Trafford.
The Premier League giants were only interested in signing the Frenchman on loan, but Barcelona were pushing to sell him on a permanent deal.
The Catalan giants did open up to a possibility of loaning him out today, but wanted Dembele to sign a new contract before joining Manchester United.
It appears the Frenchman refused to do so and Manchester United have called off their interest in signing the winger.
The Red Devils have accepted that there is very little time for them to get a deal over the line for Dembele.
Manchester United are close to signing Penarol’s 18-year-old winger Facundo Pellistri, who will be drafted into the first team.
They also have a deal in place sign Atalanta’s teenage winger Amad Traore, but he will be joining in January.