Ruben Amorim generated interest from both Manchester clubs after United have sacked Erik ten Hag.
United and Sporting are negotiating a compensation package but Amorim has been convinced to take over as Erik ten Hag's permanent replacement.
City's incoming sporting director, Hugo Viana, will see out the season at Sporting and is professionally and personally close with Amorim. United chief executive Omar Berrada defected to the club from City earlier this year and has been reunited at Old Trafford with technical director Jason Wilcox, formerly a coach and academy director at City.
City greats Kevin de Bruyne and Ilkay Gundogan are out of contract next year and stalwarts Ederson, Kyle Walker, John Stones and Bernardo Silva have entered the final two years of their deals.
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