Manchester City wanted to sign Harry Maguire from Leicester, but could not afford him, according to City boss Pep Guardiola.
The 26-year-old England centre-back is closing in on a move to United for £80m – a world record fee for a defender.
Speaking after City beat Liverpool on penalties in the Community Shield, Guardiola said: “He’s an excellent, top-class player.
“We were interested but could not afford it.”
He added: “United could afford it. He had an incredible World Cup. He’s strong in the air, good with the ball and builds it up, he’s so fast. He’s young. Congratulations to United.”
Guardiola does not expect another two-way Premier League title battle this season.
Last season City won their second consecutive title – on 98 points – with Liverpool on 97, a record for a second-placed team. Third-placed Chelsea were 27 points below the Reds.
“There will be many contenders. Manchester United – with Maguire and the other players they brought will be very good,” said Guardiola.
“And Arsenal, Chelsea and Tottenham too. There are many contenders. But I think Liverpool is champions of Europe and showed they are a top-class team.
“The difference is one point ahead and one penalty ahead. It is minimal. It is good to face them to see how well prepared we have to be until the end to try to win the title.”