The talented teenager has hit 13 goals this season for Bury, and the cash-strapped club are resigned to losing their prized assett.
They gave him permission to talk to Championship side Preston, but talks appear to have broken down on Thursday over personal terms.
United launched a bid for the player on Wednesday, but have not disclosed the amount they were willing to pay.
He is said to favour a move to the Championship, and does not want to leave Gigg Lane for a League Two club.
Chester City made a bid of £65,000 plus further incentives last week, while Sheffield United and Crewe Alexandra are also chasing him.