The Englishman has not started a league game under Jose Mourinho for more than two months, however Shandong are allegedly not in a rush to get the deal done because the Chinese window is open for another month.
Shandong signed Italian striker Graziano Pelle from Southampton last summer, and Young would play alongside former Newcastle striker Papiss Cisse.
He has made 151 competitive appearances for Man United since his move from Aston Villa, scoring only 14 goals and has fallen out of favour under the Portuguese boss.
Mourinho has spoken out about reports linking Young with a move to the Chinese Super League during the transfer window, but noted the Englishman has not approached him to discuss any potential transfer.
Just five of his 10 games this season have been as a starter and there are doubts over his future at the club, with Mourinho insists he felt sad that he wasn’t able to offer the 31-year-old any game time.
Young’s current contract at Old Trafford expires in a year-and-a-half, with the option to extend that deal by a further 12 months, but another deal could be off the table if he isn’t able to turn his future around.
The problem for Young is that Man United have better options with more to offer and if he wants to fight for his place in the side, it’ll be an uphill task to convince Mourinho for a chance.