The 24-year-old has successfully completed a medical with the club and will add some depth to Carlos Corberan's goalkeeping options following an injury to Ryan Schofield.
The Swiss-born goalkeeper has been capped 16 times by Portugal at Under-21 level and has been with Man United since 2012.
He has only made three appearances for the Red Devils but has enjoyed time on loan at Scottish outfit Hearts and Rochdale.
Corberan is delighted by the acquisition of the player, who he feels fits everything he looks for in a goalkeeper.
"Joel Pereira is a player that covers all the demands we have from our goalkeepers," said the Huddersfield head coach.
"In terms of his reflexes, domination of the box, covering spaces and distribution of the play – all of these abilities are something that aren’t easy to find in a ‘keeper.
“For me it’s a very positive reaction from the club, in terms of getting a replacement from Ryan Schofield’s injury.
“We are looking forward to working with players with potential that allow us to grow as a club.”
The Terriers head of football operations Leigh Bromby echoed Corberan's sentiments, adding: “Following the injury to Ryan Schofield, we felt it was important to have another senior goalkeeper in the group.
“Being able to attract a player with Joel’s ability shows the direction we are going in and that players believe they can develop under Carlos.
“Joel is a really interesting option for us and fits the way we want our goalkeepers to play. I’d like to thank Manchester United for their co-operation and for making this deal possible.”
Support The Yorkshire Post and become a subscriber today.
Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you’ll see fewer ads on site, get free access to our app and receive exclusive members-only offers.
So, please - if you can - pay for our work. Just £5 per month is the starting point. If you think that which we are trying to achieve is worth more, you can pay us what you think we are worth. By doing so, you will be investing in something that is becoming increasingly rare. Independent journalism that cares less about right and left and more about right and wrong. Journalism you can trust.