The England striker, 28, is said to be ready to turn his back on interest from Chelsea and Real Madrid and commit himself to Old Trafford by putting pen to paper on a new deal.
According to the Daily Telegraph, negotiations between United and Rooney have taken place this month, with the player said to have been encouraged by the offer of a lucrative new deal.
His existing £250,000 a week contract expires in 18 months' time.
The news comes after Rooney was apparently spotted in Essex yesterday afternoon - fuelling speculation he might be joining the Blues.
Roo was said to have been seen in Chelmsford by Twitter user Paul Dent-Jones - who jokingly suggested the star might be heading for talks with Conference South club Chelmsford City.
Mr Dent-Jones, the editor of the Essex Chronicle newspaper, tweeted: "Just seen Wayne Rooney driving a white Range Rover on Chelmer Road, #Chelmsford reg R99NEY...perhaps Clarets are in talks!"
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