Manchester United's new manager Louis van Gaal has been handed a £200m warchest to spend in the summer, according to the Daily Mail.

The Dutch national team manager has prepared a list of potential targets who he is willing to pursue in the upcoming transfer window and bring United back to challenging for the title, having finished in seventh spot this season.

The Dutchman will earn £6m a year and has signed a three-year contract with the Red Devils, taking over from Ryan Giggs, who was serving as the interim manager.

Giggs will take over the position of assistant manager, with a view of replacing van Gaal as the permanent man when he decides to call it a day.

Van Gaal has earmarked the likes of Toni Kroos, Mats Hummels, Holger Badstuber and Arjen Robben for a move to Old Trafford and is also keeping tabs on Cesc Fabregas, Mario Mandzukic and Luke Shaw to strengthen his squad, as he looks to build the team up from scratch.

The Dutchmlan will take over responsibility of the club after the World Cup and is preparing a series of changes in the coaching staff. The likes of Nicky Butt, Paul Scholes and Phil Neville have their futures uncertain with the manager likely to bring in his own team to work on his terms.

The 62-year-old, after being announced as the manager, revealed that he is honoured at being given the responsibility of the biggest club in the world and will do his best to bring United back to winning ways.

"It was always a wish for me to work in the Premier League. To work as a manager for Manchester United, the biggest club in the world, makes me very proud," van Gaal said.

"I have managed in games at Old Trafford before and know what an incredible arena Old Trafford is and how passionate and knowledgeable the fans are.

"This club has big ambitions. I too have big ambitions. Together I'm sure we will make history," he added.