The Red Devils were informed by the Portuguese champions that the versatile 25-year-old will cost them £25 million, according to a report in The Times.

Moutinho, who can operate anywhere across the midfield, featured in all five of Portugal's games at Euro 2012 as they fell to reigning champions Spain on penalties in the quarter-finals, where he missed the first spot-kick.

United manager Sir Alex Ferguson has already recruited Shinji Kagawa from Borussia Dortmund during the off-season, but he could be set to bolster his midfield options even further to address one of the main problem areas over the last few seasons.

Ferguson is a known admirer of Tottenham star Luka Modric, but is not willing to meet the north London club's hefty asking price for the Croatia international, who could be heading out the exit door during the current transfer window.