The Holland international - who played a lead role in helping the Oranje to the World Cup final - was a summer target for Old Trafford boss Sir Alex Ferguson.
But the midfielder seemingly ended any hope United had of luring Sneijder to England after publicly pledging his future to Inter.
Wanted man: Wesley Sneijder is a hot-property across Europe
Talks over a new deal with the European champions had begun, but those negotiations have since come to a standstill.
Soren Lorby, Sneijder's agent said: 'The talks have broken off and will resume when Inter open the door again to continue,
'Wesley has become very popular throughout Europe after the World Cup, but he has an obligation to Inter and was flattered by the words of [Inter president] Massimo Morratti, who claimed he was the leader for years to come.
'Wesley had the prospect of a great salary but Inter have gone back on their previous words.'
Plotting: Sir Alex Ferguson and Jose Mourinho could battle it out for Sneijder
If Sneijder is made available, United will be forced to battle it out with Real Madrid.
Bernabeu boss Jose Mourinho built a special bond with Sneijder during his trophy-laden spell at the San Siro.
And Lorby added: 'The attitude of the club gives him an uneasy feeling and that is reinforced by the interest of Real Madrid.
'Everyone knows that Jose Mourinho and Wesley have a very special relationship. Madrid is a more serious option now after Wesley winning three awards and reaching the World Cup final with the Oranje.'
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