Manager Erik ten Hag has set his sights on the Uruguayan midfielder as a crucial acquisition before the transfer window shuts.
Per , United have agreed a £50M fee for the tough tackling midfielder.
Whether the deal is a straight sale, or a loan with an obligation to buy, is not yet clear.
Ugarte would likely slot into the United team in place of Casemiro, or even next to him.
He would be United’s fifth major signing after Leny Yoro, Joshua Zirkzee, Matthijs de Ligt and Noussair Mazraoui.