United will pay an initial £45m with the the Eagles able to receive a further £5m in add-ons. Wan-Bissaka has signed a five-year deal with the option of a further year.
The move makes Wan-Bissaka the fifth most expensive defender of all time, with Virgil van Dijk the most expensive after his £75m move to Liverpool, while he is now the second most expensive English defender, behind Kyle Walker following his £53m move to Manchester City.
United are expected to retain their sell-on clause for Wilfried Zaha, thought to be around 25 per cent upon his permanent return to Selhurst Park in 2015, despite Palace pushing to have it removed as part of the negotiations for Wan-Bissaka.
Two bids were rejected initially as Palace held firm over the 21-year-old’s value, hoping to squeeze £70m out of United. But a breakthrough in negotiations finally came on Tuesday, with a compromise found.
The agreement came after Wan-Bissaka returned home from international duty with England at the Under-21 European Championships, where Aidy Boothroyd’s side crashed out at the group stage with a point from three games.
The full-back becomes Ole Gunnar Solskjaer’s second signing as United manager, following the £18m arrival of Daniel James from Swansea City earlier this month.
Solskjaer is understood to have been a great admirer of Wan-Bissaka for some time and is said to believe that youngster’s style of play will suit his United side.
The Norwegian is overseeing a rebuild of United’s squad this summer following the failure to achieve a top-four finish and qualify for the Champions League last year.
Wan-Bissaka was Solskjaer’s priority target in defence, though United are understood to be seeking a further addition at centre-back, with Leicester City’s Harry Maguire of interest.
Solskjaer also intends to add to United’s midfield, following the departure of Ander Herrera on a free transfer.
Bruno Fernandes, Sean Longstaff and James Maddison are all admired with attention turning to them in the coming days after the acquisition of Wan-Bissaka.