The Telegraph reports that United are in pole position to sign Schlupp in a £1.5million deal.
The Ghana international has featured in the last two under-21s games for United.
The 20-year-old was invited for a trial at Old Trafford in January.
Leicester manager Nigel Pearson said: “I think we’ll be discussing this week what the next step is. He’s done well at United, he’s played the last two games that he can play there so clearly it’s going to have some effect this week.”
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?