The 23 year-old Uruguayan will undergo a medical later today (Tuesday) ahead of his €60m move to the Red Devils, according to reports.
Both Manchester United and PSG have reached an agreement on a €50m fixed transfer fee plus a further €10m in performance-related add-ons.
Despite a spectacular debut to his PSG career, Ugarte has been progressively frozen out by head coach Luis Enrique. The Uruguay international was left out of the matchday squad that defeated Montpellier 6-0 last Friday.
Ugarte’s signing in the French capital was reportedly sanctioned before the Spaniard took over. He had initially arrived the French capital from Portuguese Primeira Liga side Sporting CP on a €60m deal.
Ugarte could make his Manchester United debut this Sunday, with the Red Devils set to host Premier League arch-rivals Liverpool in a mouthwatering clash on Matchday Three.
Ugarte is the fifth acquisition for United this summer under manager Erik Ten Hag, following the arrivals of Leny Yoro, Joshua Zirkzee, Matthijs de Ligt and Noussair Mazraoui.