The 24-year-old Kroos rejected Bayern’s latest offer in January and has opted to put any decision on hold until after next month’s World Cup while there have been reports he is demanding to become one of the Bavarian giants’ highest-paid stars.
Bayern have now said they will not improve their undisclosed offer and are refusing to meet Kroos’ wage demands with Manchester United reported to be on the verge of securing his signature.
“We will not exceed our financial limits,” Bayern president Karl Hopfner told magazine Kicker with a year left on Kroos’ contract.
“That’s the state of things. It was the same with Michael Ballack (who left Bayern for Chelsea in 2006), we withdrew our offer at one point.
“There will certainly be more talks, but eventually the player has to say what he wants.”
Both the Manchester Evening News and Daily Mail reported Thursday that United and Bayern have agreed a deal for Kroos as new Red Devils manager Louis van Gaal is set to make his first signing.
The Mail also claim United want to sign Bayern’s Dutch winger Arjen Robben.
Hopfner refused to be drawn when asked if Bayern are prepared to sell Kroos with United reported to have offered 24.7 million euros (£20m, $33.8m).
“I don’t know. Everything changes so fast sometimes,” said Hopfner.