United have been linked in the past couple of months with a move for the Roma defender, however reports emerged over the weekend that Bayern had lodged a £24million bid.
The Red Devils have been assessing a number of defensive options following the departures of Rio Ferdinand and Nemanja Vidic.
But it seems their chances of landing Benatia appear to be all but over.
Reports surfacing on the continent suggest Benatia has agreed personal terms with the Bunedesliga champions.
It is thought a £24m fee has been agreed with a lucrative pay packet to match.
Meanwhile, it is believed Roma have started negotiations with Manchester City over a move for Matija Nastasic.
The Serb has also been tracked by Arsenal this transfer window.
Written by Steve Milne