Manchester United have announced that they have agreed on a deal with Shinji Kagawa and Borussia Dortmund for the playmaker's summer move to Old Trafford.

The Red Devils have been on the trail of the Japan international for months, with manager Sir Alex Ferguson reportedly travelling to Germany on several occasions throughout the season to watch Kagawa in action.

"Manchester United is delighted to announce that it has agreed terms with both Borussia Dortmund and Shinji Kagawa for his transfer to the club. The deal is subject only to the player medical and obtaining a UK work permit. These conditions are anticipated to be completed by the end of June. Further details will be announced in due course," read a statement on the club's website.

The 23-year-old, who will be United's first signing of the summer, is thought to have cost United around £12mn, rising to £17mn depending on success and appearances, according to BBC.

Red Devils veteran Rio Ferdinand welcomed his new team-mate to Old Trafford. "Welcome to Shinji Kagawa for his transfer to Man Utd. Here's to a successful time here bro," the defender tweeted.

Kagawa has enjoyed a highly successful time in Germany, winning back-to-back league titles and the German Cup in his two seasons at Dortmund. He has also proved very effective in front of the goal, managing 28 goals and 12 assists from 70 appearances. It is understood that Ferguson was keen to wrap up the transfer after missing out on signing Lille playmaker Eden Hazard, who decided to move to Chelsea.

Meanwhile, Liverpool are apparently willing to outbid United and Arsenal to secure the services of the highly rated Crewe Alexandra midfielder Nick Powell, reports the Daily Mirror.

The report says that new Reds boss Brendan Rodgers has identified the promising 18-year-old as one of his transfer targets for the summer.

The Railwaymen had reportedly agreed a fee with United for Powell, who scored 15 goals from midfield for the League Two club last season. However, Rodgers is poised to challenge Ferguson by launching a higher offer for the teenager.

Powell had scored a spectacular volley in Crewe's playoff final win over Cheltenham at Wembley last month to ensure the club's promotion to League One.