United made their interest in the Uruguay international known this week with reports suggesting the French champions turned down an opening offer that fell 'significantly below' their valuation.
Ugarte joined PSG from Sporting Lisbon last summer in a deal worth PS51million after a move to Chelsea fell through.
While he was a first-team regular during the first-half of the season under Luis Enrique, he lost his place in the side in the second-half of the season.
PSG are eager to recoup the PS51m they spent on the 23-year-old with Fabrizio Romano reporting United reached out again on Friday to discuss a deal.
Crucially, Ugarte is open to making the move to Manchester, even without Champions League football on offer.
United finished eighth in the Premier League last season but their FA Cup triumph secured them a place in the Europa League.
United want de Ligt AND Branthwaite (Picture: AFP) Man Utd want to sign de Ligt and BranthwaiteIn what could be a busy summer at Old Trafford, United are hoping to sign a centre half and a striker in addition to a holding midfielder with Casemiro's future at the club uncertain.
The club have seen an opening offer for Everton star Jarrad Branthwaite rejected this summer with the Toffees holding out for PS70m for their prized asset.
United are not willing to meet that price and are prepared to walk away unless Everton lower their demands.
Bayern are reportedly holding out for a deal worth close to PS60million but United have indicated they are only prepared to pay half of that figure, around PS30m for the 24-year-old who starred under Erik ten Hag during their days together at Ajax.
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