Manchester United were hoping to sign Mandzukic as a replacement for Romelu Lukaku, who is expected to sign for Inter Milan iminently.
Initially, the Croatian striker was to be part of a deal that would also see Paulo Dybala move to Old Trafford.
But since Dybala's move collapsed, United continued to explore the possiblity of signing Mandzukic.
However, according to Sky Sports News, the Red Devils have opted to end their pursuit of Mandzukic.
It's reported that the decsion was taken because of the striker's excessive wage demands.
Mandzukic scored nine Serie A goals in 23 appearences for Juventus last season.
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