United became the first club to breach the €3bn-mark for enterprise value during the 2016/17 season and are now worth €3.1bn (£2.7bn) – a 7% increase on the previous year.
The increase came despite the Red Devils not taking part in the Champions League last season and finishing a disappointing sixth in the Premier League.
Real Madrid dropped down to second place on the list after their enterprise value went up by only 2% to €2.98bn.
The Spanish giants' arch-rivals Barcelona remained in third place, with their enterprise value unchanged at €2.77bn.
"Despite volatile economic conditions and challenging international affairs, the overall value of football, as an industry, has grown," the report said.
The 32 most prominent European football clubs had a total enterprise value of €29.9bn as of 1 January 2017, a 14% improvement on the previous year.
"Strengthening and consolidating its position, the English Premier League once again makes a strong showing in our report, accounting for approximately 40% of the aggregate value," KPMG added.
"As a new broadcasting deal has started in the 2016/17 season, this dominant position will likely be more pronounced in next year's edition."
English clubs held five of the top 10 spots for shirt-sponsorship revenue, with United in first place.
"Having promoted their product and projected a consistent brand for longer than any other football league, the Premier League's popularity on the global stage is unrivalled," the report said.
"The Premier League dominates key markets in Asia and North America and its international media rights are now more valuable than the domestic rights of any of its European counterparts."