The 23-year-old Uruguay midfielder has signed a contract until June 2029 with the option of another year, although he has not been registered in time to make his debut against Liverpool at Old Trafford on Sunday.
Ugarte’s arrival, which was confirmed just 90 minutes before the transfer deadline, takes United’s spending in this window to nearly £200m. They will pay PSG an initial fee of £42.3m plus up to £8.5m in add-ons.
Ugarte said: ‘It is an incredible feeling to join a club of this magnitude; one that is admired all around the world.
'The project that the football leadership discussed with me is extremely exciting; Manchester United is an ambitious club and I am an ambitious player.
‘The passion of supporters is something that is very important to me; I know how incredible United fans are and I cannot wait to experience Old Trafford. I’m someone who is so determined to succeed; I will sacrifice and give everything for my teammates. Together we will fight to win trophies and reach the level where this club needs to be.’
United’s sporting director Dan Ashworth welcomed the singing of the highly-rated defensive midfielder who has averaged the second highest number of tackles per 90 minutes in Europe’s major leagues since the start of the 2022-23 season.
Ashworth said: ‘Signing Manuel was another of our primary targets for this summer.
Ugarte is United's fifth summer signing after they secured deals for Leny Yoro, Matthijs de Ligt, Joshua Zirkzee, and Noussair Mazraoui, and he brings their spending to almost £200m
'He is among the very best ball-winning midfield players in the world and has an excellent record at both club and international level. His qualities, experience and passion will be a great complement to our strong group of midfielders.
‘Manuel is a player we’ve watched closely, and we are excited to see the positive impact he will make on the pitch and in the dressing room as we continue to strive for success.’