The confirmation of the capture of the England international brings an end to a protracted chase by Red Devils manager Sir Alex Ferguson.
The wily Scot attempted to sign Hargreaves last summer, but was rebuffed in his attempts by the Bayern board.
Ferguson went in again in January, but Bayern dug their heels in and he was forced to wait until this summer before renewing his efforts to land the 26-year-old.
In the face of renewed interest from Old Trafford, Bayern's stance softened and they confirmed earlier in May that Hargreaves would be heading to England.
The player met United officials last week before passing a medical and agreeing personal terms and all that remains is for Hargreaves to put his name to the contract at Old Trafford on 1st July.
"Manchester United is delighted to announce that it has agreed terms with Bayern Munich for the transfer of Owen Hargreaves," read a statement from United. "The player has also agreed terms with the club and passed his medical.
"Owen will formally sign his contract with Manchester United when he returns from his holiday at the end of June and will join on July 1, 2007."
It has been a busy week for United, as they captured Anderson and Nani from Porto and Sporting respectively on Wednesday.
Any Arsenal news Deadringer? I heard Baptisita won't be back but nothing else really.
they signed Lukas Fabianski, a keeper from Legia Warsaw who should probably challenge Lehman for the number one spot in 2 years if not this coming season...
a lot of whats going to happen for Arsenal is probably going to depend on the Jose Reyes situation and whether we sell him to another spanish club (since Real Madrid doesnt seem to want to keep him) or if we bring him back, which would be pretty awkward since he made it damn clear that he hates england...once that situation is settled i suspect there will be some more actual news, but for now its just the usual idle speculation involving Frank Ribery and the now annual "Henry to Barcelona" rumors...