Sky Sports News understands United are talking with Paris Saint Germain over signing the Uruguayan midfielder.
Discussions at an early stage with United exploring the conditions of a potential deal. Though Ugarte not the only midfielder United are looking at.
However, Ugarte's agent Jorge Chijane has spoken about Arne Slot's Reds making a move for the midfielder.
"Liverpool? There is a lot of talk but it is not the only club, there are others. There are many possibilities on the table," Chijane told Portuguese outlet O Jogo.
"It's almost certain that he won't stay [at PSG], it's sure he'll leave. I believe the situation will be resolved."
Source: Sky Sports
