The Red Devils are looking to bolster their forward line in the summer transfer window, and have been heavily linked with a move for Dembele who would cost in the region of £60m.
According to reports from the Daily Mail, Lyon are now prepared to sell Dembele, and the Blues have the first refusal on the French forward.
The 23-year-old striker has enjoyed a fine campaign for the French outfit this season, scoring 22 goals in all competitions already. It could take a bid of up to £60m to prise Dembele from Parc Olympique Lyonnais.
Manchester United are looking to sign Odion Ighalo on a permanent deal, but Ole Gunnar Solskjaer is still looking to bolster his striker department. The Red Devils have been linked with a move for Arsenal striker Pierre-Emerick Aubameyang as well.