A Bola reports that Kagawa could return to Borussia Dortmund in January in a swap deal which will see 24-year-old defender Neven Subotic join United.
The Japanese international has failed to make the expected impact at Old Trafford under new manager David Moyes.
Borussia Dortmund boss Jurgen Klopp is keen for Kagawa to return to Germany, where the Japanese playmaker was a key player.
Moyes could risk the wrath of United fans, should he decide to sell Kagawa as they are eager for him to become a first-team regular.
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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?