Shinji Kagawa rejects Borussia Dortmund deal?

Manchester United and Liverpool transfer target Shinji Kagawa will reportedly reject the offer of a new contract from Borussia Dortmund.

The 23-year-old is believed to have been handed a €1.5m (£1.24m) salary to commit his future to the club.

However, the club's sporting director has conceded that the Japanese international has been "flirting" with other European sides.

"There should be a decision soon. We would like to extend with him," Michael Zorc told Bild. The ball is in [Kagawa's] box. Shinji must now decide.

"We know that he is flirting with clubs in England and Spain."

Kagawa joined Dortmund in 2010.