Bayern Munich set to beat Manchester duo to signing of Bilbao midfielder Martinez

Bayern Munich look to have pipped both Manchester clubs to the signature of Javi Martinez, but the £30million-plus deal is being threatened by a bizarre hitch over how the fee should be paid.

Mindful of a likely backlash from fans over the loss of their most prized asset, Athletic Bilbao bosses wanted to avoid appearing to cash in on Martinez and hatched a plan to make it look as though he engineered the move.

President Josu Urrutia publicly denied any contact from Bayern and told last season’s Champions’ League finalists he would not accept any payment from them. The only way the transfer could proceed, he added, was if Martinez activated an escape clause in his contract and paid the 40million euros (£31.4million) himself.

German move: Javi Martinez looks set to join Bayern Munich

It was a stance aimed at pacifying Bilbao’s fanatical support, and Bayern went along with it by agreeing to pay the fee to Martinez to enable him to buy out his contract.

The 23-year old visited the Allianz Arena at the end of last week to reach a verbal agreement on a five-year contract and put the finishing touches to meeting Urrutia’s wishes.

But, just as the strangest of transfer deals was about to go through, the Spanish tax authorities were alerted to it and let it be known that Martinez would be liable to a six million euro tax bill, the moment Bayern’s 40million cheque registered in his account.

Beaten: Martrinez attracted interest from both Manchester clubs

With Urrutia still insisting he will not accept payment directly from Bayern, Martinez’s immediate future has been plunged into uncertainty.

The Spain centre-back or defensive midfielder has been a target for Manchester United for the best part of a year, while City manager Roberto Mancini admitted recently that he made an approach for him earlier this summer.

Bayern remain confident he will still be unveiled as their player in the next 48 hours and are awaiting the outcome of talks on Monday between his representatives and Spanish League officials, in an attempt to find a solution.