It was revealed last week that the Japan international midfielder had rejected a new deal at the Bundesliga champions alerting Red Devils chief Sir Alex Ferguson who is a huge admirer.
Dortmund set a Monday deadline for Kagawa, who has 13 goals in 29 games this season, to extend his stay at the Westfalenstadion with his contract set to expire in 2013.
However rumours circulated that Ferguson had approached him about moving to the Premier League giants in the summer and it appears that the 23-year-old is heading to Old Trafford after talks over a three-year deal grew close to being finalised.
Kagawa has been a revelation for BVB since joining from J-League side Cerezo Osaka for just €35,000 in 2010.
He will be joined in the red half of Manchester by Argentinian playmaker Gaitan who has been on United’s radar for a number of years and it looks as if they’ve finally captured their man.
The 24-year-old, who started his career at Boca Juniors, has been earmarked as the long-term replacement for Paul Scholes by Ferguson who is eager to boost his midfield options ahead of the next campaign.
Gaitan has become a key player for the Lisbon side since his arrival two-years ago and his style of play has led to supporters comparing him with fellow countryman Juan Roman Riquelme.
It’s understood that the transfer will be a cash-plus-player deal with fringe players Federico Macheda and Anderson moving to the Estadio da Luz after being deemed surplus to requirements by the United boss
Both players have struggled to make an impact this season and the 70-year-old has decided the duo would benefit with a fresh start in another country.