Hearts wait in wings after Lewis Neilson's Dundee United's departure is confirmed
Hearts have been linked with a move for the 19-year-old, who United say has decided "his future lies elsewhere".
The centre-back made his first-team debut in August 2020 and has played 19 times for the club.
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Hide AdSporting director Tony Asghar told United's website: "We have been in discussions with Lewis Neilson and his representatives since September and made him a concrete contract offer in February.
"These discussions were ongoing until Lewis rejected our final offer this week. He will now be leaving the club.
"Lewis was with us for almost a decade and progressed through our academy to make the breakthrough into the first team over the last two seasons.
"We wish him the very best in the next stage of his career."
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Hide AdThe Edinburgh Evening News reports that Hearts have held discussions with the teenager, with the belief that he could become a first-team regular.
Hearts could avoid paying United compensation due to the timing of the Tannadice club’s contract offer to Neilson. However, the Jambos are facing stiff competition from teams in England.
Hearts are in the market for a new centre-half after Scotland internationalist John Souttar left to join Rangers on a pre-contract agreement.
Manager Robbie Neilson has already strengthened his squad with the signing of winger Alan Forrest from Livingston on a two-year contract, while they are finalising a pre-contract of Australian internationalist Kye Rowles. He and Hearts are waiting for a UK work permit to be approved.