The out-of-contract striker will take a 50 per cent pay cut for a shock last chance to rescue his injury-plagued career.
United boss Alex Ferguson contacted Owen, 29, on Tuesday and offered him £50,000 a week to join the champions - plus huge bonuses depending on appearances and goals.
But Owen must pass a stringent medical, which could take place as early as today, before United put pen to paper.
A source close to Owen confirmed: "It's incredible that one day Michael was contemplating a move to Hull and now Manchester United have come in.
"This is just the boost he needed and now he is hoping that everything can be agreed."
Fergie's shock move comes after United missed out on Lyon striker Karim Benzema, sold Cristiano Ronaldo for £80million and lost Carlos Tevez.
Owen, axed by England boss Fabio Capello, started his career at United's hated rivals Liverpool.
He became a free agent two days ago after his contract ran out at Newcastle.
But not in his wildest dreams could he have imagined Fergie would come in.
The only clubs being seriously linked with him were Stoke and Hull, while Everton were said to be weighing up their options and Greek side Olympiakos flatly denied any interest.
Owen's agents have tried over the years to get Fergie to bite and he has refused.
But he showed a flicker of interest in January and decided to wait to see how the summer transfer market unfolded.
United have bought centre-half SEAN McGINTY, 16, from Charlton for £500,000.
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