The agreement with his parent club Shanghai Shenhua officially expired on Sunday night, and it appeared as though United had failed in a bid to keep the striker at the club.
But according to The Telegraph, both sides have now come to an agreement for the 30-year-old to stay in Manchester until the new year.
The deal is said to be awaiting confirmation by the FA before it is registered.
It is claimed Ighalo will then discuss a new contract with Shanghai Shenhua once he returns in 2021.
The news comes after his agent Atta Aneke confirmed talks were in place for the ex-Watford man to remain at Old Trafford.
Aneke told Nettavisen: “We are nearing an agreement with Manchester United on an extended loan.
“The agreement will mean that Ighalo will remain with them until January 2021.”
Ighalo swapped the Chinese Super League for the Premier League in a shock deadline day loan deal back in January.
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