Both clubs are keen on signing Rakitic.
FC Barcelona midfielder Ivan Rakitic has failed to truly establish himself at the Nou Camp and has emerged as a £20m target for rivals Manchester City and Manchester United, according to the Daily Express.
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Rakitic made the switch to Barca from Sevilla over the summer in a £14m deal having impressed at the Ramon Sanchez Pizjuan Stadium over the previous 12 months.
However, since arriving in Catalonia the Croatia international has struggled to find his place under head coach Luis Enrique and talk has already begun about an exit.
Rakitic has managed 20 appearances in all competitions so far this season, but with the likes of Sergio Busquets, Andres Iniesta and Xavi at the club – as well as youngsters Rafinha and Sergi Roberto – the 26-year-old is finding regular game time hard to come by.
City are on the lookout for new recruitment in central midfield with the future of Yaya Toure at the Etihad Stadium uncertain, whilst veteran Frank Lampard will soon be returning to New York City FC after a loan spell.
As for the Red Devils, they are looking to replace an aging midfield with the likes of Michael Carrick and Darren Fletcher in the latter stages of their careers at Old Trafford.