PSG are thought to be unwilling to drop their €60m (£51.4m) asking price for Ugarte, which is forcing Man United to look at other options, with Burnley's Sander Berge thought to be a target.
According to GiveMeSport, Ederson is also on the English club's radar, with the Brazilian being considered as a potential signing before the summer transfer window closes for business.
The report claims that Man United chiefs are working to bring in a new central midfielder, and Ederson is on the club's shortlist alongside Berge and Wolverhampton Wanderers' Joao Gomes.
Man United were linked with Ederson earlier this year, while the likes of Barcelona, Atletico Madrid and Juventus have also been credited with an interest in the 25-year-old.
Man United 'weighing up' move for Ederson
Valued at £34.4m by transfermarkt, Ederson made the move to Atalanta from Salernitana in 2022, and he has represented his current side on 90 occasions, scoring eight goals and registering two assists.
The two-time Brazil international was in strong form for his Italian club during the 2023-24 campaign, scoring seven goals and registering one assist in 53 appearances.
Ederson managed six goals and one assist in 36 Serie A appearances as his side finished eighth, while he helped the Italian giants win the Europa League last term.
The South American has another three years left to run on his current deal but will allegedly be allowed to leave the club for the right price during the summer market.
Would Ederson be a good signing for Man United?
Man United need to bring in a holding midfielder this summer, and Ederson is certainly capable of performing that role, but he has also had an impact further up the field.
The Brazilian was excellent for Atalanta last term, and he caught the eye with a brilliant performance against Bayer Leverkusen in the Europa League final at the end of May.
Much will depend on price, as Man United have shown that they are not prepared to pay over the odds this summer, and it remains to be seen how much Atalanta demand.
Erik ten Hag's side have a good relationship with Atalanta, having recently signed both Amad Diallo and Rasmus Hojlund from the Serie A team.
The Red Devils also continue to be linked with Sofyan Amrabat, who spent last season on loan at Old Trafford from Fiorentina, while Scott McTominay may be heading for the exit door.