Coach Ole Gunnar Solskjaer made Fernandes his top priority with midfielders Paul Pogba and Scott McTominay out injured.
Manchester United and Sporting were in disagreement in recent days over a fee for the 25-year-old but they have now made a huge breakthrough.
According to Sky Sports, Chief Executive Ed Woodward has agreed to pay (£46.56m) plus add-ons for Fernandes, with the deal eventually rising to 80m euros (£67.76m) which the Portuguese club are happy about.
Fernandes and agent Miguel Pinho are due in Manchester on Wednesday or Thursday to finalise the move ahead of Friday's deadline.
Manchester United will pay the playmaker a contract worth £150,000-a-week with potential bonuses.
And Fernandes is likely to be the natural replacement for Paul Pogba if the France international leaves United in the summer.
BREAKING: Manchester United make increased offer of £46.6million plus add-ons for Sporting midfielder Bruno Fernandes
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On Tuesday night, Bruno Fernandes was interviewed by Portuguese outlet SIC while getting into his car.
Asked if the Premier League is his preference, he replied: “It always was”.
When further asked if United were his favored team to join, he said: “Anything really."
United and Sporting finally agreeing a fee means the transfer is on the Portuguese midfielder who has been in great form this season .
Fernandes has scored 15 goals and provided 14 assists in all competitions this season.
Manchester United are desperate to add more creativity to their squad this month and push on for a top four place for next season.
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