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Bayern, Dortmund relationship 'back to normal' despite Gundogan transfer link

Bayern Munich and Borussia Dortmund's CEOs looked to rebuild the damaged relationship between the two sides at Tuesday's DFB-Pokal semifinal despite growing speculation that Ilkay Gundogan could join the Bundesliga champions.

The "ice age" between the German powerhouses appeared to end on Tuesday as Bayern's Karl-Heinz Rummenigge and BVB's Hans-Joachim Watzke held talks as Dortmund caused an upset to win on penalties at the Allianz Arena.

The clubs' relationship was strained following the transfers of Mario Gotze and Robert Lewandowski in consecutive summers, and the subsequent accusations from Watzke that Bayern are "out to destroy" BVB -- with the Bavarians also targeting Marco Reus until he signed a new deal this year.

But with Bayern collecting nearly double Dortmund's points tally this term and Jurgen Klopp leaving the Westfalenstadion at the end of the season, Rummenigge and Watzke have made an effort to restore peace between the Bundesliga's biggest brands.

Rummenigge told Bild: "We had a very good talk. I have the impression that things have returned to normal. It was important that we swapped ideas again."

Watzke confirmed "good talks," but was not interested in giving "atmospheric water level reports" -- a reference to the 1995 floods in the river Rhine, when radio reports would regularly announce potentially disastrous rises in the water level before declaring soon afterwards that they had fallen again.

According to a SID report, Rummenigge and Watzke may have exchanged opinions over a possible Gundogan transfer to Bayern, with BVB announcing on Thursday that the 24-year-old midfielder will not prolong his contract.

Dortmund have in the past said they want to avoid allowing Gundogan to leave on a free transfer in 2016, as they did with Robert Lewandowski last year.

BVB turned down a transfer bid from Bayern for the Poland international in 2013, and though he was convinced to stay with an improved one-year contract, the striker joined Bayern for free the following summer.

Meanwhile, local outlet Der Westen insists that Gundogan has already agreed a deal with Louis van Gaal's Manchester United. Last Friday, the paper reported that a €30 million deal to lure the Germany international to Old Trafford was all but done.

However, sources told ESPN FC that this was not the case and that Juventus and Bayern also hope to sign the holding midfielder, who returned from a painful back injury last October after over a year away from the pitch.