Manchester United has opted not to activate a one-year extension in Raphaël Varane's contract, as per a source informed ESPN.

This decision grants the defender the opportunity to engage in negotiations with clubs outside the Premier League starting January 1, potentially paving the way for a free transfer from Old Trafford in the upcoming summer.

Although manager Erik ten Hag views Varane as a crucial part of the squad, United is hesitant to trigger a one-year option that would commit the 30-year-old to wages exceeding £300k-per-week until June 2025.

While the club hasn't ruled out extending Varane's tenure, discussions around a new contract are likely to center on a performance-related agreement.

Varane's current contract is set to conclude in June 2024, mirroring a strategy previously employed with former goalkeeper David De Gea.

The club decided against activating a one-year option in De Gea's contract, resulting in his departure on a free transfer last summer.

Both Varane and De Gea were among United's highest earners last season, alongside Casemiro and Jadon Sancho.

Marcus Rashford joined this group with a new long-term contract in July worth approximately £315k-per-week.

United is expected to trigger one-year extensions for Victor Lindelöf and Aaron Wan-Bissaka to retain them at Old Trafford until 2025, with their contracts initially set to expire next summer.

Anthony Martial's contract extends until the summer, but United has chosen not to exercise the option for extension until 2025.

Despite scoring two goals in 19 appearances this season, the 28-year-old has been absent for the past three weeks due to illness, as confirmed by Ten Hag before the 2-1 defeat to Nottingham Forest.

"He's unwell, he's not available," Ten Hag said.

United are back in action against Wigan Athletic at the DW Stadium in the FA Cup third round on Jan. 8.