The Uruguay international, whose fee could rise by a further £8.5m if add-ons are triggered, has signed a five-year contract at Old Trafford after passing a medical.
He joined as Scott McTominay ended his 22-year association with United by moving to Napoli for £25.7m, with the FA Cup winners also having a 10 percent sell-on clause.
Ugarte’s arrival takes United’s summer spending to around £200m and Erik ten Hag’s to about £600m over the course of his reign.
He signed too late to be registered in time to face Liverpool on Sunday but he was a player United had pursued all summer, after spending weeks in talks with Paris Saint-Germain. The French champions had wanted a €60m fee, which United negotiated down to €50m up front and the rest in potential bonuses. PSG also have a 10 percent sell-on clause.
United had prioritised the recruitment of a defensive midfielder and, over the last two seasons, Ugarte averaged the second most tackles per 90 minutes in Europe’s five major leagues. They believe the 23-year-old is one of the best young midfielders in world football and noted he was named in the team of the tournament in the summer’s Copa America.
Sporting director Dan Ashworth said: “Signing Manuel was another of our primary targets for this summer. 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.”
Ugarte, who leaves PSG a year after signing from Sporting Lisbon, added: “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 also bought forward Joshua Zirkzee, full-back Noussair Mazraoui and central defenders Matthijs de Ligt and Leny Yoro while McTominay’s sale meant they brought in almost £100m for the players they sold this summer.
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