Young, who starred for England against Wales and Ghana, has already rejected a new Villa deal worth £80,000 a week.
An England insider said: "Him moving to Manchester United was the talk of the dressing room.
"You can see why United want him."
The former Watford ace, 25, has 14 months left on his current £65,000-a- week Villa deal.
But he has long been a transfer target for Liverpool and Tottenham.
Now Fergie has entered the race for his signature and hopes to entice him with a massive pay hike.