The 25-year-old only moved to Old Trafford from Dutch side Vitesse in 2012, but as understudy to Patrice Evra he was limited to just 13 Premier League games over the course of two seasons in England.
With Evra having signed a new one-year deal and Southampton left-back Luke Shaw also on United’s radar this summer, first-team opportunities for the new season appeared to be slim once again for Buttner.
A three-year contract has been agreed to make the switch to the Russian capital and the deal will be finalised once technical details have been ironed out.
Buttner told Dinamo’s official website: "I want to play in the Champions League and win trophies.
"Dinamo have a very strong team and I believe we can fight for first place this season."