The Italian has found himself out-of-favour at Old Trafford this season, failing to make a single appearance for the Red Devils.
The 21-year-old has previously moved on loan to Sampdoria and Queens Park Rangers, and the former Lazio forward appears set to complete another temporary switch.
“The agreement between the three parties is complete, but we still cannot say that the player will come because nothing has been signed yet,” said Elche president Jose Sepulchre.
Macheda has also been linked with a move to Stuttgart in the January transfer window, with the Bundesliga outfit’s director of football Fredi Bobic confirming the club’s interest.
But he has grown increasingly frustrated by the lack of opportunities in recent seasons at Old Trafford, and Under-21 Italy international expressed his desire to move on loan earlier in January.
“I had very bad luck with the loans but I think it helped me a lot,” said Macheda.
“I think it helped me to gain experience in general.
“If I go out again on loan, I’m sure I will do well. I have been away two times already and, if it happens again,
“I’d look forward to getting playing time because maybe I made some mistakes but now I understand. I will take the chances I will have.”