The 30-year-old star - who joined in January from Chinese Super League club Shangahi Shenhua - is said to have secured a longer stay at the Premier League outfit after his loan deal ran out on May 30.
According to the Telegraph newspaper, both Untied and Shanghai have decided Ighalo will be able to stay until January 2021.
It's said the deal is still awaiting confirmation with the FA, but the striker - who is a huge fan of the Red Devils - will later discuss a new deal with his parent club once he returns at the start of 2021.
The reports comes after the former Watford man's agent Atta Aneke confirmed talks were underway to figure out an extension.
He recently said: "We are nearing an agreement with Manchester United on an extended loan.
"The agreement will mean that Ighalo will remain with them until January 2021."
It's thought Ighalo took a 40% pay cut to make a dream move to United on transfer deadline day in January, and he scored four goals in eight games before the current season was suspended due to the coronavirus pandemic.