A Twitter account dedicated to the club posted a photo of the 16-year-old appearing to sign a deal alongside assistant manager Ryan Giggs.
Fosu-Mensah can also operate in midfield and was originally brought to the club from Ajax last September.
Manager Louis van Gaal is understood to be a big fan of the Holland Under-17 captain who has been touted as a future star.
And he will reportedly continue his development in the Under-21 squad under Paul McGuinnes this season.
Van Gaal is now expected to step up his interest in adding some experience to his back line.
16-year-old Timothy Fosu-Mensah has signed his first contract with #mufc.pic.twitter.com/NtdUa8ivsb
— RedReveal (@RedReveal) August 14, 2015
Nicolas Otamendi has been persistently linked with Old Trafford and is reported to have recently gone on strike at Valencia.
Meanwhile, a deal for Barcelona winger Pedro is still dragging on, while signing a striker remains a priority.
Harry Kane has been linked with a move but Tottenham are keen to keep their star man.
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