Rumours linking De Gea with a return to Madrid - where he started his career with Atletico - have been commonplace since a move to the Bernabeu failed in the final hours of the 2015 summer transfer window due to an administrative error.
United meanwhile have Victor Lindelof and Lukaku, with City bringing in Bernardo Silva, Ederson and Kyle Walker, with Benjamin Mendy almost certain to join - with the possibility of Alexis Sanchez moving too.
"I don't like to speak about players who aren't ours, because Morata is not our player".
'La Gazzetta dello Sport' goes further in their reporting and says that the Spanish forward is just "a step" away from joining the Milanese club. Today's stories feature the latest update on some of the major happenings in world football which may change the complexion of a few clubs. It was a crazy idea and we didn't even want to try it, but then Vincenzo Montella told us to continue pushing. "We've signed an important player in attack and it's difficult, although you never know".
If Morata moves to the San Siro he would take the club's spending to more than £200m and become their TWELFTH signing of the summer.
Should United end up going after Schmeichel, it'll reportedly set Jose Mourinho's side back at least £30M, as reported by the Mirror, for the 'keeper who kept nine clean sheets in 30 league appearances for the Foxes last season.
Both clubs are currently in Los Angeles on their preseason tours of the United States and are due to face each other later this month before doing battle in the Uefa Super Cup next month.