Manchester United's board will not recommend an £800m takeover bid by American tycoon Malcolm Glazer - but will let the club's shareholders decide on the offer.

Old Trafford directors are locked in negotiations with Glazer's advisers over the wording of a statement to shareholders which is expected this week.

"They're basically saying to shareholders that the price is fair and that they should be mindful of that but we can't recommend it because of the large amount of debt involved," a source told Reuters news agency.

Glazer, who has had two bids for United rebuffed, has offered 300 pence a share in cash, a premium of nearly 10% to its share price of 274p today.

Despite days of talks, however, the board has told the Glazer that it cannot recommend the offer because of £300m of debt Glazer plans to load on to United's balance sheet to finance the deal.

"There's no recommendation, there'll be some views, but it is ultimately up to shareholders," the source added.