Based on the information provided, Manchester United have made a formal offer of £59 million for Joao Neves, a 19-year-old defensive midfielder from Benfica. However, Benfica has rejected this offer, along with a similar bid from PSG, as they are intent on keeping Neves unless his release clause of 120 million euros is activated.

Benfica’s president, Rui Costa, is determined to retain the young talent, whose current contract runs until 2028. This situation means that Manchester United would need to break their club transfer record to secure Neves, as his release clause is set at a substantial 120 million euros.

Other Premier League clubs like Chelsea and Arsenal have also shown interest in Neves, but as of now, Manchester United is the only English team to have made a formal proposal for his signature.

Given the circumstances, the question arises whether Manchester United should increase their offer to meet the 120 million euros release clause. This decision would hinge on their evaluation of Neves’ potential and the importance of reinforcing their defensive midfield position, which reports suggest they are actively pursuing with interest in other players like Manuel Ugarte.

Ultimately, whether to pursue Neves further at the increased price or explore other options remains a strategic decision for Manchester United, considering their transfer budget and priorities for the upcoming season.