The England Under-21 centre-half had a medical with the Premier League champions on Wednesday, after turning down offers from Arsenal and Liverpool.
Jones only made his Premier League debut in March last year but has made a big impact in his first full season.
The 19-year-old was due to travel to Denmark with the under-21s on Wednesday for the European Championship.
Jones will not find it easy to disrupt United's first-choice centre-back pairing of Rio Ferdinand and Nemanja Vidic, while Chris Smalling and Jonny Evans are also competing for places at the heart of Sir Alex Ferguson's defence.
But he impressed as Blackburn ended their season with a four-game unbeaten run, which included a 1-1 draw with United and wins over Bolton and Wolves, to ensure their Premier League survival.
Jones, who was born in Preston, joined Blackburn's youth set-up in 2002, making his debut in a Carling Cup win at Nottingham Forest in September 2009. His first Premier League appearance came six months later in a 1-1 draw with Chelsea at Ewood Park.
United striker Wayne Rooney reacted to the news by writing on Twitter: "Phil Jones is a good young English player. One of the toughest defenders I played against last season. Can play midfield too."
He added: "I don't know if Phil Jones is signing for us, just saying he is a good player that's all. I haven't got a clue if he is signing or not."
The defender has made 35 appearances in total for Blackburn but has yet to score for the club.
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