The 20-year-old spent last season on loan at Brighton, where he scored 5 goals from 27 Championship appearances. But with United adding Zlatan Ibrahimovic to their squad this summer, his chances at Old Trafford look slim, and Birmingham City are keen to offer him a season away.
Jose Mourinho is said to be keen on allowing Wilson to gain some valuable experience, with Rooney, Ibrahimovic, Martial and Rashford all at his disposal at the start of his first season as United boss. All 4 of the forwards featured for the club in their 2-1 win over Leicester City in the FA Community Shield on Sunday.
City are keen to add to their striking options, especially after drawing 0-0 with Cardiff City on Saturday, and see Wilson as the perfect option to try and push them into the play-off picture.
Wilson marked his senior debut in the Premier League with a brace, back in 2014 against Hull City.