The 24-year-old had been widely expected to join Bayern Munich but it seems like they have switched their attentions elsewhere. United, meanwhile, have already recruited another goalkeeper - Aalesund's Anders Lindegaard - but are seeking competition for places in the event of Edwin van der Sar's retirement and have kept a close eye on Neuer's progress.
There is also the possibility chance that Arsenal could join the race with their goalkeeping troubles well-documented.