The Dutchman has finalised the terms of a contract with a United delegation headed by the Glazer family in the last 24 hours.
Van Gaal is expected to sign a short-term contract of no more than three years and take over at Old Trafford when his stint with the Netherlands national team finishes after the World Cup.
A United delegation including executive vice-chairman Ed Woodward and one of the Glazer brothers have been negotiating the precise terms of the deal at Van Gaal's villa in the Algarve.
Although United today publicly distanced themselves from rumours that Van Gaal has already put pen to paper, they have not denied that terms have been agreed between the two parties.
As reported by Goal, Van Gaal held initial talks with United last week and told friends he was "very keen" on taking over at Old Trafford after the World Cup.
Van Gaal, who turns 63 in August, represents a relatively short-term fix and a considerable departure from the long-term planning trumpeted by United in the wake of David Moyes' appointment 11 months ago.
However, following Moyes' disastrous tenure, which came to an abrupt end when he was sacked on Tuesday, United chiefs have put their faith in an experienced manager with a proven track record of success.
Van Gaal's outstanding CV which features league titles in three different countries, has outweighed reservations about his abrasive reputation and possible unavailability until the second week of July, should Holland reach the World Cup final.
He is reportedly set to appoint former Holland, Newcastle United and Ajax striker Patrick Kluivert to his backroom staff.
Van Gaal, who had been installed as the bookmaker's favourite to replace Moyes in the wake of the Scot's dismissal, has made no secret of his desire to coach a Premier League club after the World Cup.
The former Barcelona, Bayern Munich and Ajax boss has had three meetings with Tottenham but, as interest from Old Trafford grew, told the Spurs hierarchy that he was not interested in taking over at White Hart Lane. He was also approached by Arsenal due to uncertainty over the future of Arsene Wenger, but has decided to take on the challenge of restoring United to pre-eminence.
The Dutchman regards United as one of the world's top clubs and believes they would represent a perfect final chapter of what has been a glittering coaching career.
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