The deal also includes a potential for 10m euros (£8.46m) in additional payments.
The move comes at the same time as midfielder Scott McTominay’s proposed 30m euros (£25.37m) switch to Napoli.
Ugarte has been linked with Manchester United throughout the summer and is now poised to sign for the Old Trafford club, just one year after joining PSG from Sporting Lisbon for a reported 60m euros.
The 23-year-old made 37 appearances for Luis Enrique's side, including 25 in the league as PSG won their 12th Ligue 1 title.
It is understood PSG have also negotiated a 10% sell-on clause for Ugarte, with both clubs privately claiming they are happy with the deal.
He is good at Intercepting, defending and helping the attack play.
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