David Ornstein has disclosed that Nottingham Forest are demanding a British-record transfer fee from Manchester City for Elliot Anderson, a move that could have significant consequences for Manchester United during the upcoming summer window.

Anderson has become one of the most sought-after midfielders in England, with his impressive performances for Nottingham Forest and the national team earning him a key role alongside Declan Rice in Thomas Tuchel’s England squad for the World Cup.

Manchester United have already sealed a deal to bring in Brazilian midfielder Ederson from Atalanta as a replacement for Casemiro at Old Trafford. However, reports indicate that the INEOS ownership is eager to sign at least one more central midfielder, as Uruguayan star Manuel Ugarte is also expected to leave the club.

Although Anderson has been identified as one of United’s top targets, the 23-year-old is understood to favour a move to Manchester City. City have reportedly made a second ‘verbal offer’ to Nottingham Forest for the England international.

According to Ornstein, the latest bid from City is valued at £106 million, with potential add-ons pushing the total beyond £120 million. However, The Athletic reports that Forest are holding out for a guaranteed fee that would surpass the £125 million British record Liverpool paid Newcastle United for Alexander Isak last summer.

Anderson still has three years remaining on his current contract, which he signed after joining Forest from Newcastle in the summer of 2023 for £35 million. That transfer also saw goalkeeper Odysseas Vlachodimos move the opposite way, effectively valuing Anderson at just £15 million at the time.

This represents an extraordinary increase in valuation, largely influenced by the huge sums paid in recent years for midfielders such as Enzo Fernandez, Declan Rice, and Moises Caicedo.

There is no turning back now. Just as Forest have justified their £125 million valuation by referencing those previous deals, other clubs will be closely watching Manchester City’s next move. Should City pay up, it will set a new benchmark that could push future transfer prices even higher.

Following confirmation of City’s bid for Anderson, journalist Ben Jacobs reported that Manchester United have decided to withdraw from the race for their “dream target.” Instead, United are shifting their focus to three alternative midfielders.

Jacobs wrote that Manchester United consider the cost of signing Anderson “too high,” despite viewing him as their ideal signing. The club is now in discussions with Matheus Fernandes, while Alex Scott and Carlos Baleba also remain on their shortlist.

Fabrizio Romano recently reported that West Ham have set Fernandes’ price tag at £85 million, while other sources claim Bournemouth are demanding between £80 million and £100 million for Liverpool target Alex Scott. According to Transfermarkt, both players are currently valued at £43 million.

Meanwhile, there have been suggestions that Brighton have reduced their asking price for Carlos Baleba to around £75 million, down from the £100 million they demanded from United last summer. However, given that Brighton are still asking Tottenham for £70 million for Jan Paul van Hecke—with only one year left on his contract—it seems unlikely that the Seagulls will ease their tough negotiating stance. Baleba is currently valued at £47 million.

In previous transfer windows, Manchester City have occasionally entered bidding wars for players such as Declan Rice and Moises Caicedo with no serious intention of completing the deal, primarily to drive up prices for their rivals. This time, however, their interest in Anderson appears genuine. Still, their involvement has once again intensified the market pressure.

As a result, Manchester United could find themselves paying inflated prices for whichever midfielder they eventually sign this summer, having missed out on their top target, Elliot Anderson.