The 63-year-old's is expected to manage the Red Devils until June and then remain at the club for at least a further two years in a consultancy role.
It's been gathered that Manchester United reached an agreement with Lokomotiv Moscow for the release of Rangnick, who was manager of sports and development at the Russian club.
Ralf will take over from Michael Carrick who was in temporary charge of the team for last week's 2-0 Champions League win over Villarreal and Sunday's 1-1 draw at Chelsea in the Premier League since the sack of Ole Gunnar Solskjaer.
Ralf Rangnick first game in charge will be Thursday's game against Arsenal at Old Trafford stadium.
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