The Serie A side rejected a bid of £6.8m for the Austrian forward at the weekend and the Red Devils were expected to submit an improved bid.
However, according to the Athletic, Erik ten Hag’s side have now moved onto other targets.
The report states that “United received a number of complaints from fans about the idea of the club signing the 33-year-old.”
Several fans also emailed chief executive Richard Arnold directly to voice their disapproval in pursuing the 33-year-old.
Interest in the Austrian, who is now managed at national level by former United interim manager Ralf Rangnick, broke just hours before our Premier League opening weekend defeat to Brighton & Hove Albion.
Manchester United pull out of move for Marko Arnautovic
Ten Hag wanted Arnautovic as a cut-price option to bolster his attacking options before the summer transfer window closes on September 1.
The former Stoke City and West Ham United striker, who scored 43 Premier League goals during his time in England, previously worked under both Ten Hag and United’s assistant manager, Steve McClaren, during his time at Twente.
Having had a spell in China with Shanghai SIPG, the mercurial forward returned to Europe last season by joining Italian side Bologna on a two-year deal, scoring 14 goals in 33 league appearances.
Arnautovic had previous experience playing in Italy after making three appearances under former Reds boss Jose Mourinho at Inter Milan.
But Bologna insisted Arnautovic was not for sale and with his asking price rising, United opted to walk away from negotiations.
The Reds have also missed out on signing Slovenian wonderkid Benjamin Sesko with the Red Bull Salzburg striker opting to join the Austrian giants’ sister club RB Leipzig next summer.