Hannibal Mejbri has rejected a new contract offer from Manchester United.
The Tunisia midfielder is set to move on-loan to Birmingham City.
The Manchester Evening News says Hannibal will leave United without signing a contract extension offered to him as part of his loan package.
United were keen to tie him down to a new extended deal before he departed on loan, but he will instead leave the club without accepting it.
United sources remain relaxed about the situation and insist talks will continue over a new deal while he is plying his trade in the Championship this season.
Hannibal penned a deal to 2024 in May last year.