He will be Ole Gunnar Solskjær's first signing, with the United manager looking to rebuild after a hugely disappointing end to the campaign.
The 21-year-old Welshman is believed to have cost the Red Devils around £18 million and marks the start of a new transfer policy - young, British talent.
"Daniel has successfully completed a medical at the Aon Training Complex", said a statement from Manchester United. Further details will be communicated once the global transfer window opens next week, " a statement from Man United official website read in part.
Sky Sports News claim the Manchester giants have agreed terms with Swansea over a deal worth £18m - £15m up front with a further £3m in additional add ons - and James has already agreed personal terms over his move to Old Trafford.More news: Trump signs long-awaited $19.1 billion disaster bill
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The deal is hoped to be completed ahead of Wales' EURO 2020 qualifier with Croatia on Saturday.
James had a fantastic season with Swansea, netting four times and seven assists in the Championship.
James being on the verge of a move to Manchester United will surely be hard to stomach for Leeds fans.
According to Evening Standard, the Red Devils are aware of the hard situation with respect to Sancho and they have seemingly admitted defeat in signing him during the current transfer window.
"If it happens, United are getting an exciting player that I know Man United fans will get behind and enjoy watching him".