The current Holland boss has been strongly linked with the position since David Moyes’ sacking, with many outlets suggesting that the experienced former Barcelona and Bayern Munich chief has been the standout candidate for the club’s hierarchy.
It is understood that the 62-year-old will take to the Old Trafford dugout when he finishes his spell with the Netherlands national side after the World Cup in Brazil.
An agreement is said to have been reached with Executive Vice Chairman Ed Woodward after a few days of discussions in Portugal.
Van Gaal will be given around £100m to invest in the first-team squad as he sees fit, with bolstering their ranks a priority for United after a dismal campaign.
The well-travelled manager is also known to have a good working relationship with Robin van Persie, which may be vital in keeping the former Arsenal man at the Theatre of Dreams amid speculation that he is looking to leave.