Heinze set for Spain after losing Liverpool battle

After a two-day hearing, a three-man panel ruled that a letter, signed by Red Devils chief executive David Gill, confirming the sum United would be willing to accept for the defender, did not constitute a binding undertaking to offload the 29-year-old to anyone who matched the £6.8million fee.

Heinze now looks set for a move to Spain with United reportedly having already offered the player to Real Madrid and Barcelona.

However, Spanish champions Real are still pursuing Chelsea's Arjen Robben and Daniel Alves of Sevilla, who would each cost in the region of £20m, while Barcelona are believed to be happy with their options at left-back, having recently signed Eric Abidal.

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So far, Liverpool are the only club United have publicly confirmed have met their valuation, but Gill and manager Sir Alex Ferguson both refused to sanction a deal which would have seen Heinze become the first player to leave Old Trafford for Anfield since Phil Chisnall in 1964.

Now the Premier League have backed that view, leaving Heinze to see out the remaining two years of his United contract.

"We are pleased that the panel has endorsed our case," said a Manchester United spokesman.

Both Gill and Ferguson attended the hearing, with United maintaining they made it clear to the 29-year-old both orally and in writing that he would not be permitted to join one of their title rivals.

So, it now appears that if Heinze is intent on leaving the club he will have to move abroad, with Lyon supposedly among the interested parties.

The Premier League said in a statement: "The hearing concluded that nature and intention of the disputed 13 June 2007 letter, especially when taken in context of verbal discussions and Manchester United FC's transfer policy, was unambiguous in that it envisages only an international transfer.

"Furthermore the hearing finds the letter constitutes an 'agreement to agree', and did not create an obligation or binding agreement for the club to transfer the player to any particular club.

"In other words the letter is evidence of an intention to negotiate, both between the parties and with potential buying clubs, and not evidence of any intention to create legal relations."

Heinze does have the right to appeal to the Premier League appeals committee, which is made up of an independent, legally-qualified chairman, a member of the Premier League panel and a PFA appointee.