Manchester United have been dealt a major blow after transfer target Karim Benzema revealed he wants to join Barcelona or Real Madrid next summer.

Sir Alex Ferguson has been tracking the Lyon striker for a long period and was close to signing him before Dimitar Berbatov's arrival at Old Trafford.

Benzema, 20, is regarded as one of the best young strikers in the world and was voted French player of the year as he helped Lyon win the league last season.

The prolific forward has admitted he is ready to leave the French club at the end of the season.

United thought they were in pole position to clinch his signature, but Benzema said: "My future? I like Spain. Next year I will play for Barca or Madrid."

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