Coentrao has long been linked with a move away from Real Madrid and now looks set to be closing in on a move to Old Trafford.
United boss David Moyes see the highly-rated Portuguese left-back as an alternative to Everton ace Leighton Baines.
Moyes has failed with several bids for Baines in the current transfer window.
Coentrao has also been strongly linked with a move to Tottenham. Reports suggests Spurs have been in contact with Coentrao over a move.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.