Manchester United midfielder Nicky Butt is set to join premier league rivals Newcastle United, Manchester United said on their website on Monday.
The 29-year-old England international has left the club's tour of the United States and is ready to discuss personal terms with Newcastle.
"Nicky Butt has left the Manchester United tour of America," the club said in a statement.
"Manchester United have agreed terms with Newcastle United, pending a medical and Nicky Butt's personal terms."
Butt emerged from Manchester United's successful 1992 youth team alongside David Beckham, Paul Scholes and the Neville brothers to play nearly 400 matches for the club.
He won six premier league winners' medals and was in the team that beat Bayern Munich in the 1999 Champions League final.
Butt lost his place in the side last season following injury problems, however, falling behind Roy Keane, Scholes, Phil Neville and Eric Djemba-Djemba in the central midfield pecking order.
An England regular at the 2002 World Cup, he was a member of his country's Euro 2004 squad but did not add to his 35 international caps after suffering a knee injury.
Butt should fill the gap in Newcastle's squad left by the recent departure of experienced midfielder Gary Speed to Bolton Wanderers.