The 18-year-old broke into the first-team during United's world tour this summer, after he was named the club's Reserve Player of the Year last season.
A number of top European clubs were tracking the Manchester United youngster, and the report claims Bayern Munich, Barcelona and Bayern Munich have all watched him.
His current United deal is set to expire at the end of this season, so David Moyes has moved quickly to tie down one of his most promising academy prospects. Reports earlier last week claimed United had offered the youngster a new deal, and the latest Daily Mail update claims he's on the brink of signing it.
The report claims he's already one of the highest earners in the United reserve team, but the Old Trafford hierarchy are ready to reward him with a new bumper deal following his successful step-up to the first-team.
United believe he's now ready for regular first-team football and are reportedly willing to send him out on loan.
The preference is for a Premier League club, but United are prepared to send him down to the Championship if he's guaranteed a place in the starting lineup.
He impressed as United slipped to a 3-1 defeat to Sevilla during Rio Ferdinand's testimonial, and former-Manchester United youth coach Eric Harrison believes the 18-year-old has the potential to become the 'next Cristiano Ronaldo'.
Harrison is an excellent judge, having overseen the rise of the 'Class of 92' - including David Beckham, Gary and Phil Neville, Ryan Giggs and Nicky Butt through the academy to the first-team.