The 22-year-old defensive midfielder is expected to leave Sporting Lisbon this summer and several clubs are interested in signing him.
Paris Saint-Germain have identified him as a big target and have already tabled a bid worth €60m ahead of the transfer window.
Chelsea and Newcastle also have their eyes on Ugarte and have informed Sporting Lisbon that they are ready to match PSG’s bid.
But according to Portuguese sports daily A Bola, Manchester United have also joined the queue of suitors for Ugarte.
The Premier League giants are planning to spend big this summer and are looking at midfield reinforcements.
Erik ten Hag wants a player who can compete for Casemiro’s place in the team and Ugarte has been identified as a target.
Manchester United are prepared to compete with Chelsea, Newcastle and PSG for the midfielder’s signature.
Sporting Lisbon want his future sorted out soon as they want time to bring in a replacement for Ugarte.