Eriksen, via his agent Martin Schoots, told Levy two years ago that he would never play for another London club out of respect to Spurs. Rivals Chelsea had previously been linked.
After United made their interest in the 27-year-old known ahead of Thursday's transfer deadline, Eriksen reiterated that he was not prepared to play for another English club.
His representatives pulled the plug on the potential £80million move to Ole Gunnar Solskjaer’s side as a result, telling United that playing in Spain is their client’s priority.
The Dane is now being tracked by Diego Simeone’s Atletico Madrid, who recently signed Kieran Trippier for £20m, though Real Madrid have long been mooted as his preferred destination.
A transfer to the Bernabeu is complicated by the fact that Real boss Zinedine Zidane appears to be prioritising moves for Paul Pogba and Ajax’s Donny van de Beek.
Serie A side Juventus have also been linked with Eriksen amid Spurs’ interest in Paulo Dybala.
The English transfer window closes at 5pm on Thursday while those in Spain and Italy will remain open until September 2, giving Eriksen time to secure his move abroad.
Tottenham were believed to want £80m to let Eriksen join a Premier League rival — around £20m more than they are likely to quote interested European clubs this summer.
Spurs risk losing Eriksen for nothing if they do not sell him abroad in the next three weeks because his £75,000-per-week contract is due to expire in 2020. The attacker spoke out in June about wanting to ‘try something new’.
