Manchester United's rumoured fee for JJ Gabriel from Real Madrid is ten times less than what they would be due if the wonderkid moved to another Premier League club.

According to Fabrizio Romano, Gabriel has decided to choose Real ahead of the likes of Barcelona, Bayern Munich and Paris Saint-Germain and has informed all interested clubs.

With a verbal agreement struck on a long-term contract, Gabriel's move will go through on January 1 and has been accelerated because of his European passport he qualified for due to his Irish and Cypriot heritage.

Man United to receive minimal compensation fee from Real Madrid for JJ Gabriel

Days after scoring a hat-trick in the UEFA Youth League, Gabriel told United he wanted his registration cancelled immediately in order to become a free agent.

United denied that request and Gabriel, while still a Red Devils player, has been left to wait before he can sign for Real.

A report from MARCA reports that United chiefs are "tearing their hair out" over the loss of Gabriel, who they believe to be an £100 million prospect.

Instead, United are poised to receive a minimal training compensation fee rumoured to be £300,000.

Article 20 on FIFA's Regulations on the Status and Transfer of Players (RSTP) states that a compensation fee is due "when a professional player transfers between clubs belonging to different national associations".

Because of Gabriel's age, Real are required to provide adequate education when it comes to school and football as well as make necessary arrangement regarding his welfare.

Man United miss out on lucrative Premier League compensation as JJ Gabriel makes decision

However, the situation would very different had Gabriel been on the verge of signing for another Premier League club.

Premier League youth rules would have allowed Gabriel to leave for nothing had United not offered him a scholarship.

They did come up with a proposal, though it was rejected by Gabriel's camp as they took issue with a perceived lack of promises from the club.

Therefore, any interested Premier League club would have needed to negotiate a fee for Gabriel. If that did not happen, the Professional Football Compensation Committee tribunal would have stepped in to decide the compensation.

United would have expected more than a £3 million, as well as a 20% sell-on clause in the deal.

In a recent, high-profile example, Liverpool paid Chelsea £2.8 million up front for exciting talent Rio Ngumoha.

They also had to pay a further £1.2 million in performance-related add-ons, while Chelsea will be due 20% of a future transfer fee involving Ngumoha.

United will not receive any of the above but the capture is seen as a major coup for Real, who are expected to ease Gabriel into the club's academy set-up and Castilla side and ensuring he is ready for the first-team.

He will hope to follow compatriots Jude Bellingham and Trent Alexander-Arnold into the Los Blancos side after failing to make a first-team appearance for United.

His only experience in a first-team game was a cameo in a pre-season friendly against Atletico Madrid.