The Bayern Munich midfielder has ruled out a move to the Premier League, with the German club insisting a transfer "would not be possible" in this summer's window.
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United opened talks with Bayern over a 50 million euro move for the midfielder when it faced the German club in the Champions League, and was hopeful a deal could be completed this summer.
But Kroos now appears to have poured cold water on any deal, with the club telling him a transfer “would not be possible" in the upcoming summer window.
The news will represent a significant blow to new manager Louis van Gaal's transfer plans, as he plots an overhaul of the current Old Trafford squad.
"I would be very surprised [if Bayern let me leave before end of my contract in 2015]," he told Bild. "The club was very clear and told me that a transfer in 2014 would not be possible.
"There have been many speculations, but Manchester United was never an issue and is no issue right now."
Kroos scored four goals in 51 appearances in all competitions for Bayern in 2013/14.