United had been the front runners for Ronaldo after he told Real Madrid that he wants to leave the club this summer.
But Jose Mourinho wants to concentrate on his original target Morata to solve his front man worries rather than splash the cash on his teammate.
Spain international Morata is the cheaper option with a £65million price tag stuck on his rather than the £175m it would cost to sign Ronaldo.
Morata is also keen to leave the Bernabeu during this transfer window after struggling for game time in their title winning campaign.
He re-signed for Los Blancos for £26m last year but only started 14 league games – netting 15 goals.
However, United are yet to make a bid for Morata yet as Real president Florentino Perez revealed to radio station Onda Cero on Monday night.
“We haven’t received offers for anyone this summer,” he said.
“No one has offered us anything – not for Cristiano, not Morata – not James.
“We have a great team and, when the time comes, we will improve it.”
Portugal international Ronaldo is keen to leave the La Liga champions after Spanish tax authorities started an investigation into his tax affairs.
French giants Paris Saint Germain are now the only side likely to bid for Ronaldo.
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