The paper also report that German champions Bayern Munich are interested in the player, but that both clubs are reluctant to stretch to United's beefy £90M valuation of the 22-year-old.
The Red Devils want him to sign a new contract, but the two parties have failed to find an agreement so far.
Martial is no longer a first choice, and scored only eight goals in 2016-17 and 11 last season.
They reportedly want a world record fee for Hazard, which would help them sign Martial and reinforce their squad.
The Observer confirmed that while the club are aware of Martial's grievances, they will refuse to sell him and active an extension clause which would tie him down until summer 2020.
Martial is set to start the season as the leading striker for Manchester United in the absence of Romelu Lukaku and Marcus Rashford, who are recovering from their World Cup excursions. It appears it was not only supporters who were frustrated as Anthony Martial pushes for a move away.
At the moment though, it looks like Martial's future lies away from Manchester United.
The Blues are working on a deal to sign the attacker this summer.