He would have given Nani a new contract earlier in the year, but one on his old terms of £80,000 rather than the £125,000 that he demanded during negotiations in the summer. He initially thought that he could follow compatriot Cristiano Ronaldo’s contract curve, with improved deals each time. United didn’t agree.
So why the change of heart from United, why the cooling of interest? Put simply, the club don’t think he’s as good as he thinks he is. They don’t think he’s improved his game sufficiently as they’d hoped and felt let down by the player at several points last season.
Just as Sir Alex’s mind was made up by Dimitar Berbatov’s inability to change big matches which would ultimately leave to his departure, so United have lost confidence in Nani. Berbatov’s inability to take two chances against City in the 2011 FA Cup final went badly against him, so Nani’s performances against City in the crucial April derby did the same.
None of the coaching staff doubt Nani’s raw talent and his instinct in matches which can lead to moments of genius. There have been times when Nani has been United’s most creative player, the closest to one the team have had since selling Ronaldo to Madrid in 2009. He has improved, no doubt. Ferguson even complimented him on his “maturity” at the start of 2010, while he was nominated for the PFA Young Player of the Year in 2011, a season when he was also named in the PFA Team of the Year alongside team mates Edwin van der Sar, Nemanja Vidic and Dimitar Berbatov. But his progress was not as good as United expected in 2011-12
It isn't a great leap to read between those lines.
If Mitten is to be believed then the club clearly do not feel that Nani is top level.