The Uruguayan international is rumored to have agreed with the Red Devils regarding a five-year contract.
Erik ten Hag's team is resolute in enhancing their midfield options before the summer transfer window's closure.
Ugarte has been widely associated with a move to Old Trafford, and he is believed to be their primary target in that area of the field.
According to recent reports, Man United has diminished their interest in the South American player, as PSG is reportedly unwilling to reduce their asking price, estimated to be approximately £51 million.
Nevertheless, the Red Devils are purportedly continuing negotiations with the French champions, and journalist Nicolo Schira has reported a significant development.
Schira, via X, asserts that the midfielder is now "one step away" from joining the 20-time English champions, as personal terms on a five-year contract have already been reached.
On Wednesday, Fabrizio Romano, a transfer expert, stated that Ugarte was "insisting a lot" on a transfer to Ten Hag's team.
The 23-year-old has made it plain that he is interested in joining the English giants this summer.
Jorge Mendes, the midfielder's agent, is believed to be optimistic that a deal will be completed before the transfer window closes for business. PSG is still willing to sell Ugarte at the appropriate price.
Man United has already made four acquisitions this summer. Leny Yoro, Matthijs de Ligt, and Noussair Mazraoui have arrived to strengthen the defense, while Joshua Zirkzee has been brought into the forward position.
A new central midfielder is also considered a priority for the club in the latter phases of the market.
Despite the rumors regarding their futures, Scott McTominay and Casemiro may remain at Old Trafford; however, Christian Eriksen is anticipated to depart.
Would Ugarte be an advantageous acquisition for Manchester United?
It is reasonable to assert that Ugarte is a defensive midfielder who is both mobile and powerful in possession, which is a requirement for Man United.
Last season, the South American was a consistent member of PSG, appearing in 37 matches across all competitions and contributing three assists.
However, the French Titans can allow him to depart for the appropriate fee.
Ugarte's skill set is an ideal match for the Premier League, as evidenced by his performance at this summer's Copa America representing his country.
Last season, Man United's midfield was excessively exposed, and it is evident that Ten Hag intends to rectify this issue this summer. Ugarte may serve as a midfield partner to Casemiro and Kobbie Mainoo this season.
Ten Hag is seeking to assemble a team capable of competing for major championships, and this formation could result in Bruno Fernandes playing higher up the field behind a front two.
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