Reports from Portuguese media outlet Record have claimed that Liverpool and Manchester United target Nicolas Gaitan is set to sign a contract extension with Benfica. The 26 year old Argentine midfielder has been a long term transfer target for Manchester United while Liverpool also expressed their interest to sign the 26 year old in the summer.

However Gaitan is now set to sign a contract extension which will keep him with the Portuguese giants till 2018. Nouveau Riche French side had earlier offered Benfica €30m in the summer for Gaitan as a possible replacement for the Real Madrid bound James Rodriguez. However the deal failed to materialize as Benfica had put a €45m asking price on their prized asset.

It is believed that Gaitan’s representative will be present in Lisbon in midweek as Benfica take on Monaco in the group stages of the Champions League. An agreement appears to have been been agreed with the club and the player himself. Gaitan will now sign an extension till 2018 which will also see him a significantly higher wage packet.

For both Liverpool and Manchester United, this comes as a massive blow and the Premier League giants will now have to look elsewhere for a player with similar ability and potential.