The Uruguay international arrived at Old Trafford in the summer of 2024, signed for £50M from Paris Saint-Germain, but his move has not quite worked out as he continues to struggle.
With United set to lose Casemiro at the end of the season, the club are ready to rebuild their midfield as soon as the summer window opens.
This rebuild includes the sale of Ugarte, who are looking for around £35-40M to offload the playmaker according to reports.
According to Fabrizio Romano, United are planning to go ahead with the sale which would free up funds to invest in a new midfield set up for the new campaign.
“The plan has not changed for Man United.
“Manuel Ugarte expected to leave the club as revealed and two midfielders (at least) to join in the summer window.”
Of the 10 games Ugarte has started this term which includes the EFL Cup exit to Grimsby Town, United have won just once.
The Sun report that Andre Onana, Marcus Rashford, Joshua Zirkzee and Manuel Ugarte will all be free to find new clubs in what is the start of a major clear out at the club.
United will secure Champions League football over the coming weeks which will hand Carrick a bigger transfer budget to go out and bring in fresh talent for a potential title charge next season.