Diouf is set to have a medical in Manchester next week.
Diouf will stay with Molde on loan until January, when he will be joining United.
Speaking at a press conference in Kuala Lumpur earlier today, Sir Alex Ferguson said: “We’ve been looking at him for two years.
“We weren’t intending on signing anyone else after last week – we feel we have a full squad – but the situation accelerated to a point where other clubs started to make bids, so we had to decide whether we acted or didn’t act.
“We decided to act and he’ll be the last person we sign.”