The Spanish left-back, 20, has spent the first half of this season on loan at Granada.
Alvaro Fernandez Carreras looks set to permanently leave Manchester United
Prior to joining the LaLiga side, he had played just four games for the Red Devils' U21s and not yet featured for the senior side.
And now it appears he will not get the chance to as Benfica close in on completing a deal - despite Man Utd's injury crisis.
According to Record, the Portuguese champions have an agreement in place to land the youngster for £8.6m.
It is understood there are "still some details to be worked out" before contracts can be signed.
And the nature of the deal remains up in the air as Fabrizio Romano understands it could yet be a loan deal.
It comes at a time when Erik ten Hag is without a number of defenders including Luke Shaw, Harry Maguire, Victor Lindelof, Tyrell Malacia and Lisandro Martinez.
Full-back Carreras joined Man Utd in 2020 as the Premier League giants pinched him from Real Madrid.
He spent last season on loan at Preston in the Championship, playing 39 of their 46 league matches.
And he has made 14 appearances for Granada since arriving in the summer.
However, the Spanish side have struggled for results as they languish in LaLiga's relegation zone following just two wins from 19 games.
By contrast, Benfica sit second in the Primeira Liga, one point behind Sporting Lisbon.
But they were eliminated in the Champions League group stage after finishing below Real Sociedad and Inter Milan.
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