The Daily Mail says United, who are anxious to make a big-name signing, are being offered Ozil for £40m.
The Germany star, 24, was a target for Sir Alex Ferguson after the 2010World Cup but he joined Real instead for £12.5m. Now he is ready to quit the Spanish giants.
Ozil’s representatives have made it clear he would welcome a move to United and that Madrid could accept £35m as they look to fund a world-record bid for Gareth Bale from Tottenham.
The former Werder Bremen player is under contract until 2016 but is said to have become unsettled by Real’s pursuit of Bale just a year after they beat United to sign Luka Modric from Spurs.
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