Varane's long-term future at Los Blancos remains uncertain ahead of his current deal expiring next summer.
United are reportedly keen to secure a new centre-back in the transfer window as Ole Gunnar Solskjaer wants a defensive partner to pair alongside Harry Maguire.
ABC reported last week that Varane wouldn't commit to a new Madrid deal amid a better proposal made by the Red Devils.
Now, Defensa Central claims that United's proposal would see a hefty pay rise for Varane should he make the switch to Old Trafford.
The 28-year-old French centre-back earns £4.3m-a-year wages at Madrid, but the publication reports that Los Blancos could increase it to £7.7m-a-year.
However, the Madrid defender reportedly 'wanted more' and wanted to land a salary similar to David Alaba, who is on a hefty £10.7m-a-year wages after signing on a free from Bayern Munich.
United have been linked with both Varane and Madrid captain Sergio Ramos in a bid to challenge Manchester City for the Premier League title.
Ramos, 35, could be closing in on the end of his remarkable 16-year spell at Madrid as his current deal with Los Blancos will expire at the end of the month.
United may have to spend as much as £60m to land Varane, despite the French World Cup winner entering into the final year of his Madrid deal.
But Varane could leave in the summer after the appointment of Carlo Ancelotti, who he had "disagreements" with during the Italian's first spell at Madrid.
The France international told L'Equipe in 2017: "Since he left, I've improved.
"I could have perhaps played more under him if I could have shown him [that] he could count on me in difficult times.
"There was less turnover and you really needed to bring the house down to have any chance of playing again. I wasn't able to do that.
"[Ancelotti] made his choices, and I can understand them; I didn't play as much as I would have wanted, but it pushed me to ask questions of myself and progress.
"At the time, I would have liked to have had more of an explanation. We have had disagreements, but we're both capable of admitting when we're wrong. Since, we get on very well.
"I needed to know what I had to do to get time on the pitch. He told me things clearly, notably that he considered me important.
"We set out again on a good footing. I try to return the trust he has in me when he plays me."
The Red Devils have also identified Villarreal's Pau Torres, Atalanta's Cristian Romero and Brighton's Ben White as potential targets.
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