The Dutchman is keen on bolstering his attacking department by signing a new striker this summer, while the future of Cristiano Ronaldo remains shrouded in uncertainty.
Ronaldo wants to leave Old Trafford, while Manchester United have maintained that they will not sell him.
But the Red Devils have zeroed in on Bologna hitman Arnautovic as a potential striker signing in the ongoing window.
Manchester United slapped in a bid worth £7.3m for the Austrian, but the Serie A side rejected that offer as they do not want to sell him.
However, according to Sky Deutschland, the Mancunians have no plans of giving up on their hopes of signing the ex-West Ham United star and are prepared to increase the fee they are offering for his services.
Ten Hag is 100 per cent convinced that he needs Arnautovic at his disposal this season, a player that he knows well from their time together at Twente.
Arnautovic is keen on joining Manchester United while Sinisa Mihajlovic, his coach at Bologna has personally asked him to not leave the club this summer.
