MIAMI (REUTERS) - Retired England soccer star David Beckham has chosen Miami for a new United States (US) Major League Soccer (MLS) expansion team, a source familiar with the negotiations said on Tuesday.

The former England captain, who retired from soccer earlier this year, played in MLS with the LA Galaxy and his contract included an option to create a new team for US$25 million (S$31 million).

He had been considering several locations and toured Miami this summer, meeting with city and county leaders.

Beckham was still putting together a team of investors, the source said. The person spoke on condition of anonymity because Beckham's plans have yet to be officially announced.

His representatives are already looking at sites for a purpose-built soccer-only stadium, according to a well-placed source in Miami's business community.

"They have people looking real hard. They want to be in the urban core," the person said.

MLS confirmed it was in discussions with Beckham but declined to confirm if a deal had been struck.

"We are continuing our discussions with David Beckham regarding future ownership of an MLS expansion team," said Dan Courtemanche, a spokesman for MLS.

"Our policy regarding discussions with potential expansion team owners is that we keep those conversations private until the individuals we are speaking with decide they want to go public with their plans. Thus, it is more appropriate for David Beckham to comment on his plans."