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After missing out on the Premier League title last season in a campaign without silverware, United are set to bolster their squad ahead of the forthcoming campaign.
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An Old Trafford source told The Daily Mail: “We have made enquiries for all three players [Modric, Tiote and Baines].
“But Sir Alex will not be paying these ridiculous fees.”
This reaction follows United's decision not to pursue the purchase of Eden Hazard from Lille, as both Manchester clubs refused to break the bank for the Belgian playmaker.
The source added: “The clubs may have acted independently but, for once, there was total agreement between United and City that, while Hazard is an exceptional talent, the figures were way over the top.”