Manchester United leading race to sign £3m Crystal Palace starlet Nathaniel Clyne

Manchester United are increasingly confident they will win the race for Crystal Palace starlet Nathaniel Clyne and could be ready to make a £3 million bid this month

The England under-21 international is out of contract at the end of the season and Palace have been unable to tie him down to a long-term deal amid interest from a host of clubs including Newcastle, Fulham and Everton.

Goal.com understands United have jumped to the front of the queue and could seal a move for the 20-year-old this month to secure one of the brightest emerging talents in English football.

United are one of a number of clubs considering an official bid before Palace play the second leg of their League Cup semi-final against Cardiff City next week - but they believe the player already has his heart set on a move to Old Trafford.

Palace chairman Steve Parish admitted this week that the Londoners are resigned to losing Clyne and suggested the player’s agent has already made contact with Premier League clubs.

"Nathaniel won't sign a new contract,” Parish told the London Evening Standard. “I have offered him a very lucrative one and I can't force him to accept it. 

"His agent has got Nathaniel running his contract down - make your own mind up about what's happening."

United manager Sir Alex Ferguson is believed to have been impressed by Clyne’s display in Palace’s shock win at Old Trafford in the League Cup quarter-final in November. Injuries to Rafael have meant that Chris Smalling and Phil Jones have had to fill in at right-back, and Clyne is seen as a long-term option to compete for the position.

If Clyne leaves Selhurst Park in the summer, the Eagles will be set to receive a compensation package as the player is under 24 and has come up through the club’s youth system. Rather than risk letting the fee be decided by tribunal in the summer, Palace will be tempted to cash-in this month on an offer in the region of £3m for the Academy product.

Clyne has already made 121 appearances for Palace and was voted as the club’s player of the year for 2011, while he has played a key role this season as Dougie Freedman’s side eye a place in the Championship play-offs.