Manchester United have reportedly agreed a £2.5m compensation package with Ajax to recruit Erik ten Hag as their new manager.

The 52-year-old is believed to be edging closer to a move to Old Trafford after agreeing a three-year contract with the option of a 12-month extension.

According to The Mirror, United have triggered the £1.6m release clause in Ten Hag's contract, but the Red Devils have been forced to pay more as they are also set to recruit the Dutchman's assistant Mitchell van der Gaag, taking the total package to £2.5m.

The report adds that United's first-team squad have been informed about Ten Hag's imminent arrival and an official announcement could be made after Saturday's Premier League clash against Arsenal.

With Van der Gaag seemingly set to join Ten Hag at Old Trafford, the likes of Steve McLaren and Robin van Persie are now unlikely to follow suit, with the latter set to continue working as a coach with Feyenoord's academy.

Ten Hag will reportedly be handed a £200m budget by United's hierarchy to strengthen his squad ahead of the 2022-23 campaign.