If finalised, the deal will become the biggest in the American sportswear company's history, and will dwarf the £72 million deal signed by rivals Manchester City earlier this year.
Currently Nike pay around £303 million over 13 years for the privilege of having their trademark swoosh logo emblazoned on Manchester United shirts.
That deal expires in 2015 but a six month exclusivity window opens in February, allowing the Red Devils to open talks about a lucrative new contract.
United chief of staff Edward Woodward admitted this week he was looking for a ‘major increase’ in United’s deal with Nike and can renegotiate a deal during an exclusive six month window that starts in February.
The Mail reports that Manchester United could look for an increase in their deal with Nike that sits in line with the other commercial deals they have signed.
At the start of Nike’s time sponsoring the club, British telecoms company Vodafone paid the Old Trafford outfit £8 million for the right to sponser them; for the 2014/15 season American car manufacturer Chevrolet have agreed to pay £52 million for the same privilege.
That represents a six-fold increase in sponsorship payments and if Nike sign on the dotted line for a period similar to their current deal they could end up paying an astonishing £1 billion to keep their logo on the front of Manchester United’s shirt.
Nike have reportedly offered golfer Rory McIlroy £156 million over ten years in sponsorship money.