A source has told ESPN there has not yet been a formal approach made to PSG, and the 23-year-old is one of a number of options being considered.

The Uruguay international played 37 times for PSG last season, including 25 appearances in Ligue 1.

United have shown interest in Ugarte in the past, following him closely during his spell at Sporting Lisbon. They were linked with a move last summer before he made the move to PSG in a deal worth around £50 million ($63m).

United are looking for a defensive midfielder amid doubts about the long-term future of Casemiro. The Brazilian, who endured a difficult season in his second year at Old Trafford, has a contract until 2026 but is one of the club’s highest earners.

United have sought to reduce their wage bill in the last year, allowing David De Gea, Raphaël Varane and Anthony Martial to leave on free transfers. Casemiro, who joined United from Real Madrid in a £60m deal in 2022, has been linked with a move to Saudi Arabia.

Christian Eriksen, who has a year left on his contract, could also leave while Sofyan Amrabat’s future is also unclear with United yet to take up the option to make his loan move from Fiorentina permanent.

United are still working on deals to bring in Jarrad Branthwaite and Joshua Zirkzee. Progress on Branthwaite has been slow with Everton demanding more than £70m for the England defender. Leny Yoro at Lille and Crystal Palace’s Marc Guéhi, who has impressed with England during the Euros, are among the other targets.

Zirkzee is one of a number of strikers being considered by United along with Lille’s Jonathan David and Brentford’s Ivan Toney.