Paul Pogba in action for france in Euro 2016
The 23-year-old midfielder returns after four years away for a record fee of £89 million, having left United for Juventus for £1.5m in 2012.
Pogba, who has signed a five-year deal, added: "This is the right club for me to achieve everything I hope to."
Manager Jose Mourinho said the France international could be "the heart of the club" for the next decade.
He added again by saying "the time is right to go back to Old Trafford"
United will pay the Italian champions 105m euros for Pogba, plus five million euros (£4.5m) in performance-related bonuses, and other costs, including five million euros if Pogba signs a new contract.
The fee surpasses the £85m Real Madrid paid Tottenham for Wales forward Gareth Bale in 2013.
He is Mourinho's fourth signing at United, after Ivory Coast defender Eric Bailly, Swedish striker Zlatan Ibrahimovic and Armenia forward Henrikh Mkhitaryan.
It is the first time in 20 years an English club has set a world-record transfer fee, after Newcastle United paid £15m to sign England striker Alan Shearer from Blackburn Rovers.
Pogba joined United from French club Le Havre in 2009 as a 16-year-old, but made just seven appearances before his contract expired in July 2012
United will pay the Italian champions 105m euros for Pogba, plus five million euros (£4.5m) in performance-related bonuses, and other costs, including five million euros if Pogba signs a new contract.
The fee surpasses the £85m Real Madrid paid Tottenham for Wales forward Gareth Bale in 2013.
He is Mourinho's fourth signing at United, after Ivory Coast defender Eric Bailly, Swedish striker Zlatan Ibrahimovic and Armenia forward Henrikh Mkhitaryan.
It is the first time in 20 years an English club has set a world-record transfer fee, after Newcastle United paid £15m to sign England striker Alan Shearer from Blackburn Rovers.
Pogba joined United from French club Le Havre in 2009 as a 16-year-old, but made just seven appearances before his contract expired in July 2012
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