The Tannadice Park club declined a £1.7million bid for the sought-after Scottish striker earlier on Friday but appear to have found a deal with the Premier League club
Blackburn Rovers and Dundee United will settle on a deal of £2 million up front with add-ons of up to £800,000 for striker David Goodwillie, reports BBC Sport.
The 22-year-old scored 18 goals for United last season, who rejected a bid of £1.7m from Rovers on Friday morning, but are believed to have come to an agreement with the Premier League side.
Before the improved offer came in, United manager Peter Houstonhad said the club would not settle for less than £2m.
He said: "I've said all along and I'll repeat it - if somebody comes in and offers the money we think is due, he'll be away. As simple as that.
"What they'll be getting is a guy who can score goals in the Premier League for fun, a strong player, a guy who might well soon get international recognition.
"As far as I'm concerned, we're not asking over the top for David Goodwillie - for a guy who scores 20-odd goals a season."Rangers manager Ally McCoist revealed on Friday that he remains enthusiastic about signing the player but United would prefer the striker to move to a club outside Scotland.