United have been chasing the new Madrid captain all summer and refused to sell goalkeeper David de Gea to the club unless the centre back was involved in the deal.
But, according to Spanish newspaper Marca, the 29-year-old is set to commit his future to the club by signing a new deal.
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Earlier in the transfer window it appeared Ramos was destined to leave the Bernabeu, having told the club to listen to any serious offers for his service. United were the front runners but following showdown talks the club captain will now be staying put.
Marca report that the new five year deal will see Ramos incur a pay rise, taking his annual salary, after tax, to €9 million - plus a number of add ons. The deal will see the defender potentially see out the rest of his career at Real, something the paper claim he always wanted.
Having suffered a huge backlash from the sale of club legend Iker Casillas, Real Madrid president Florentino Perez was determined not to lose a second long-term servant of the club and appear to have given in to all of Ramos' demands on a new deal.
Manchester United have expressed their disappointment at the former Sevilla defender's stunning U-turn, saying they feel betrayed having been under the impression he wanted to leave Madrid and join the Red Devils.
The feeling around Old Trafford is that Ramos was never really interested in a move to Louis van Gaal's side and just used the club as leverage to gain himself a new deal at his current club.
The future of David de Gea is also yet to be decided, but Van Gaal has said the players future has become a problem for everyone involved.
It has also been confirmed that United will not be making an approach for Valencia defender Nicolas Otamendi this summer having been heavily linked with the Argentine centre back.
Many people feel United still need to sign a centre back before the end of this window and that need for a defender was shown last night as the Red Devils fell to a 2-0 defeat to PSG. Phil Jones' performance was especially scrutinised, as he failed to deal with the threat of Zlatan Ibrahimovic.
Recent reports have linked the Manchester club with a move for Everton defender John Stones, who is a major target of Chelsea.
With the Goodison Park club already rejecting two offers from the London side and claiming the defender is not for sale, United may be in for further disappointment in the window.