Rangnick would replace the recently sacked Ole Gunnar Solskjaer as the team’s coach for the rest of the season, while they seek a full time replacement.
The Athletic reported on Thursday that Rangnick will join the club on a six-month contract with a two-year consultancy to follow, and that his current club, Lokomotiv will have to release him from his current contract.
CNN has reached out to Manchester United and Locomotiv Moskow for comment.
A source at United told Reuters that discussions between the two sides are continuing but nothing has been finalized.
He will not take charge of Manchester United’s match against Chelsea on Sunday, while he waits for a work permit.
The move follows Solskjaer’s dismissal from the club following a three-year spell as manager in which the club did not win a trophy.
Prior to joining Lokomotiv Moscow, the German coach spent time managing at RB Leipzig, Hoffenheim, Schalke and Hannover.