The Arsenal winger is out of contract in the summer and is free to talk to clubs in the New Year. A number of English Premier League outfits have been reportedly keen on the England international, but United now look as though they are leading the way.
It is thought that the 23-year-old is keen to move to Old Trafford to challenge for titles and trophies, something that he is not doing with the Gunners right now.
Sir Alex Ferguson of course signed Robin van Persie in the summer window from Arsenal and could now be prepared to dive into their squad again.
The Dutchman has settled into life with the Red Devils extremely well and could even be a key factor in bringing Walcott to Old Trafford.
With the future of Nani unclear, Ferguson wants to bring in another winger and believes that Walcott would work extremely well in his current squad.
With Liverpool, Manchester City and Chelsea also keen, it is a story to keep an eye on.