The 26-year-old has had an impressive season at Villa Park, with eight goals and seven assists to his name, a term which has seen him register his first England goal in last month's defeat of Denmark.
United and Liverpool have long been admirers of Young, but after having a scout present at Villa's loss at Bolton Wanderers on Saturday, Munich are now favourites to land the former Watford man.
The Old Trafford club have been linked with Young previously after the sale of Cristiano Ronaldo, and their interest may be further swelled with the uncertainty surrounding Antonio Valencia's recovery from a fractured and dislocated ankle.
The Reds meanwhile, will be sure to rebuild their squad this summer, with the future of interim manager Kenny Dalglish as yet unknown, following Roy Hodgson's departure from the club in January.
Since the resignation of Martin O'Neil, five days before the start of the season, Villa have been unable to establish themselves as a genuine force in the Barclays Premier League under Gerard Houllier.
Last week's limp FA Cup 5th round exit to Manchester City and Villa's plight in the bottom half of the Barclays Premier League, means Young will need to seek pastures new to secure European football next season.
The England international has stated that he is unwilling to negotiate his current contract, which has 16 months to run, until the end of the season, further fuelling speculation he may be on the way out this summer.
"I have always said I will leave talks until the end of the season and that's how it is," Young told The Sun.
Louis van Gaal's side have endured a somewhat difficult season themselves with qualification for next season's Champions League yet to be assured, and after failing to contest for the Bundesliga title this season, wholesale changes are expected this summer.
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