Manchester United are reportedly closing in on moves for Borussia Dortmund midfielder Shinji Kagawa and Hoffenheim's Gylfi Sigurdsson.

Kagawa, 23, recently announced his intention to leave Germany this summer, with United understood to be in the driving seat for his signature, according to the Daily Mail.

Sigurdsson, meanwhile, who is currently on loan at Swansea City, was watched by United boss Sir Alex Ferguson on Saturday.

United dropped to second in the Premier League table after losing 1-0 to Manchester City on Monday.