A flotation could help reduce a debt pile that has helped make the owning Glazer family, from the U.S., deeply unpopular with many fans, helping inspire slogans such as "Love United, Hate Glazer" brandished by some supporters.
This debt could also see United struggle to meet "Financial Fair Play" rules put forward by football's European governing body UEFA, one of the aims of which is to limit the amount of borrowing clubs can take on.
Sources could not confirm whether United's potential offering would include existing shares, which would involve the Glazer family cashing in some of their stake.
Despite their unpopularity among fans, the Glazers have consistently said they do not plan to sell the club, making it more likely they plan to issue new shares to raise funds which could be used to reduce the club's huge debt.
This month, Britain's Sunday Mirror tabloid reported the Glazers were looking to sell as much as 25 percent in a share offering. It was unclear whether the $1 billion figure related to the sale of a stake of this size.
"[United] has a huge fan base out of Asia, and Singapore is viewed as a bit more of a pan-Asian exchange. Hong Kong is very much China-facing," said one banker.
"Maybe they feel that with the attraction of the entire Asian fan base, Singapore is more of a neutral venue, rather than tying all their flags to a China story."
One source said the loss-making club had switched to Singapore from Hong Kong, which has become the venue of choice for global brands such as fashion house Prada SpA and cosmetics maker L'Occitane International , but did not give a reason.
Hong Kong bars unprofitable companies from listing on its exchange. United's 2010 full-year results showed gross debt attached to the club of 522 million pounds, with a net loss of 84 million pounds.
The Glazer family, which took United private following a 790 million pounds takeover in 2005, has endured a turbulent spell at Old Trafford. Fans have taken to wearing the original green and yellow colours of United's predecessor club, Newton Heath, in an anti-Glazer campaign.
The Americans have been criticised by supporters who are uncomfortable with the club's debt, despite continued on-field success, most recently last season's record 19th league title.
