Man United close in on Wolves forward Matheus Cunha ahead of Newcastle with star eager to play under Ruben Amorim after the pair were spotted chatting on Sunday

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Manchester United are inching closer to agreement with Wolves forward Matheus Cunha over a move to Old Trafford.

United will still need to activate the Brazilian's £62.5million release clause but are hopeful of having terms in place by next month while they still have headroom under Profit and Sustainability Rules.

As Mail Sport revealed, Newcastle United have been the main competition for Cunha's signature, and they were keen to utilise him on the left of their attack, but the 25-year old looks to have been swayed by the prospect of playing a pivotal role in Ruben Amorim's squad revamp.

Amorim has made no secret of his admiration for Cunha, praising his versatility and goals output. The United manager was also spotted in conversation with Cunha after United and Wolves met at Molineux and again in the tunnel at Old Trafford on Sunday.

United also hope to sign Ipswich Town's Liam Delap but face increasing competition for his signature as Chelsea and others consider activating his £30m release clause.

Owing to PSR, finances are at a premium for Amorim, and further recruitment plans will hinge on sales and whether they can qualify for Europe.

Manchester United are edging closer to an agreement with Wolves forward Matheus Cunha

Cunha is eager to work under Ruben Amorim and be part of the project at Old Trafford

Amorim was seen with his arm around Cunha in the OId Trafford tunnel at half time on Sunday

United also hope to sign Liam Delap but face competition from Chelsea for the Ipswich striker

They have also held discussions over Napoli's Victor Osimhen, Red Bull Leipzig's Xavi Simons and Benjamin Sesko, Eberechi Eze of Crystal Palace and Antoine Semenyo at Bournemouth as they draw up lists for all scenarios.

Marcus Rashford, Jadon Sancho, Antony, Casemiro and Alejandro Garnacho could all be sold this summer but realising their optimum value will not be so easy.

United, meanwhile, have held talks over a deal for Le Havre teenage forward Enzo Kana-Biyik. The 18-year old is out of contract this summer.