The Spaniard is out of contract at the end of the season and the Red Devils are failing to tie him down to an extension.
Talks have been ongoing since last year over the player’s future in Manchester.
And Herrera has been keen to stay at Old Trafford, given Ole Gunnar Solskjaer has shown plenty of faith in him since Jose Mourinho’s December departure.
But personal terms have not been agreed and Manchester United now face the prospect of losing the fan favourite.
PSG are seen as the frontrunners to secure a deal to snap up Herrera on a free transfer this summer.
The Ligue 1 giants can offer him a more substantial pay packet and are looking to take advantage of his situation.
However, the Daily Mail say Arsenal have also made they interest in the player known in case he decides to leave Old Trafford.
The speculation surrounding Herrera’s future comes as:
“Herrera is now after a bump up to around £150,000-a-week”
The 29-year-old is currently on £80,000-a-week – a modest sum for a first XI player at United.
Having re-established himself as a key figure in the team, Herrera is now after a bump up to around £150,000-a-week.
United, though, insist a deal must be fair for the club as well as him, even with Herrera being part of Solskjaer’s plans.
Herrera is said to be unhappy the club have allowed talks to drag out so long with only two months remaining in the season.
He has subsequently been able to hold discussions with foreign clubs like PSG since January 1.
But Arsenal are in the mix too, and Unai Emery would seemingly welcome the Premier League star on a deal which would not significantly hurt his restricted transfer budget at the Emirates.
United are still hopeful of persuading Herrera to stay, but he is certainly weighing up his options with London a potential destination.
Following Arsenal’s approach to register their interest, the Daily Mail do not suggest Herrera would turn down United’s Premier League rivals.
Financial terms appear crucial to Herrera’s future, and the report claims Arsenal can offer him more favourable terms – just like PSG – because it would be a free transfer.
Herrera has spent five years in Manchester since joining from Athletic Bilbao, and his future should become clear soon.