The Uruguayan international is believed to be a top target for David Moyes as he plots a radical overhaul of his squad during the off-season.
Despite him having only signed for PSG last year, Cavani is said to be looking for a big move in the coming months after growing frustrated at life at the Parc des Princes.
However, a switch to United is seen as a no-go if the Premier League champions cannot offer top level European football.
Although unsettled, Cavani, 27, is said to be unwilling to sacrifice Champions League action at this stage of his career.
The news will come as a he blow to United, who are likely to have to win this year’s competition to get back into the tournament for 2014/15.
Moyes’ men are now 12 points adrift of the top four in domestic action, and look to be on the edge of elimination from continental competition as they carry a 2-0 deficit into the home leg of the last-16 clash with Olympiakos.
Even if United can match the South American’s ambitions, a deal is still likely to cost around £50m.