Shinji Kagawa's transfer to Manchester United from Borussia Dortmund for €22m (£17.6m) has moved closer, while Crewe Alexandra's Nick Powell will decide whether he will join Sir Alex Ferguson's team in a prospective £4m deal when he has returned from holiday.

Kagawa is back in Japan and it is understood that Thomas Kroth, the 23-year-old's agent, travelled there from Germany in the past few days to discuss the move.

An initial bid of €18m from Sir Alex Ferguson was rejected last week but Dortmund have now reportedly agreed a fee that will be worth €22m with add-ons for a player that cost them €350,000 from the Japanese club Cerezo Osaka.

Ferguson watched Kagawa a fortnight ago when he scored in Dortmund's 5-2 win over Bayern Munich in the German Cup final. He scored 13 goals in 31 league games as Dortmund won the Bundesliga from Bayern by eight points and he fits the profile currently adhered to by United of a young player who could improve and does not cost a premium price.

Regarding Powell, who scored an impressive goal in Crewe's 2-0 win over Cheltenham Town at Wembley in Sunday's League Two play-off final, it is thought Ferguson is in pole position to sign the 18-year-old attacking midfielder, who has also interested Tottenham Hotspur and Arsenal.

Despite reports that United have had a £4m bid accepted, an executive at Crewe said: "There have been no offers made yet. Nick is likely to decide on his future when he returns from holiday. At the moment there are not a big number of clubs interested and, if he does move, it will be about the club rather than money."

In addition to the opening goal at Wembley Powell has scored 14 league goals in 55 League Two appearances for Crewe since making his debut in August 2010.