Nice want to take the Uruguay international on-loan for the second-half of the season in a deal United have approved.
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However, Ugarte is stalling on the move, says Jeunes Footeux.
Former PSG midfielder Ugarte is yet to be convinced about returning to Ligue 1 and joining OGCN.
If he must leave Old Trafford, the 24 year-old would prefer an alternative destination.
Nice and United are both managed by Ineos.