The 28-year-old Netherlands international joined the Red Devils from Ajax for £13.8m in 2014, when fellow Dutchman Louis van Gaal was in charge.
Blind, a versatile player able to play in defence and midfield, was a regular under Van Gaal but has struggled for game time since Jose Mourinho arrived at Old Trafford.
According to The Sun, Man United want to finalise the deal before they head to the United States on their pre-season tour.
The report also claims that the Dutch club will pay an initial £14m to re-sign their former player on a four-year contract.
Blind played in both the 2016 FA Cup final and the following year's Europa League final victory over Ajax.