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It is claimed that Atletico manager Diego Simeone views Felix as the team's most important player.
As a result, Atletico have no intention of selling the Portugal international, who has a €350m (£295m) release clause in his contract at the Metropolitano Stadium.
Following the reports of United's failed bid, Atletico Madrid's English Twitter account posted an image of Felix accompanied by a one-word caption: "Priceless."
The tweet has gone down well with fans of the Spanish club and supporters of United's Premier League rivals.
"Lol, rubbing salt on United's wounds," wrote one fan on Twitter.
Another added: "Oh, you know EXACTLY what you're doing there, admin."
While a third wrote: "Bodied United."
Felix still has four years remaining on his Atletico contract and is said to be happy at the Spanish club.
He first joined Atletico in 2019, becoming the fourth-most expensive player in history when he arrived in a club-record €126m (£106m) move from Benfica.
Felix has struggled to live up to his huge price-tag, managing only 29 goals in his 112 games for the club, but was part of the side that won the La Liga title under Simeone in the 2020-21 season.
According to AS, United decided to make a move for the forward after being impressed by his performance in Atletico's pre-season win over the Red Devils last month.
Hehehe the timing— André Rodrigues (@andre01590) August 17, 2022
Admin knows what he’s doing— 🎗 AFCMahfuz 🇧🇩 🏴 🎗 (@B123Mahfuz) August 17, 2022
Lol 🤣 rubbing salt on united's wounds— Saha (@Saha_2206) August 17, 2022
Oh no Man United 😂😂— Tobie (@Tobie_blessed) August 17, 2022
Felix scored the only goal of the match to hand Simeone's side a 1-0 win in Oslo, Norway.
Any potential deal for Felix could involve Cristiano Ronaldo, 37, heading the other way to Spain.
The Independent claim Atletico remain interested in singing the former Real Madrid star, despite already receiving a backlash from fans over the proposed transfer.
Ronaldo's boyhood club Sporting Lisbon have also offered to sign the veteran striker on a free transfer if United are willing to allow him to leave this summer.