Although late, I thought I might post another solution using the notation in Lee's Introduction to Topological Manifolds. First, some useful information from the book:
Definition: A coodrinate ball in a topological $n$-manifiold is any open subset which is homeomorphic to a ball in $\mathbb{R}^n$. A coordinate ball $B$ is called a regular coordinate ball if there is an open neighborhood $B'$ of $\overline{B}$ and a homeomorphism $\varphi:B'\to B_{r'}(x)\subset\mathbb{R}^n$ that takes $B$ to $B_r(x)$ for some $r'>r>0$ and $x\in\mathbb{R}^n$.
Proposition 4.60 Every manifold has a countable basis of regular coordinate balls.
Suppose $M^*$ is an $n$-manifold. Let $B$ be a regular coordinate ball centered at $\infty$ (by the above proposition) and without loss, homeomorphic to the unit $n$-ball $\mathbb{B}^n$. Since $B$ is contained in some larger coordinate ball $B'$, then $\overline{B}$ is homeomorphic to $\overline{\mathbb{B}}^n$ via a homeomorphism $B'\to B_{r'}(0)$ for some $r'>1$.
Set $U=M^*\setminus \overline{B}$. In $M^*$, we have
$$\overline{U}=\overline{M^*\setminus\overline{B}}=M^*\setminus\left(\overline{B}\right)^{\circ}=M^*\setminus B$$
which is compact (by openness of $B$ in $M^*$). Since $M$ is an open subset of $M^*$ (in the subspace topology) containing $\overline{U}$, then we do indeed have that $\overline{U}$ is compact in $M$, so that $U$ is precompact in $M$.$^{1}$
Using the inversion map, we have that
$$\begin{align*}
M\setminus U
&=M\setminus\left(M^*\setminus\overline{B}\right)\\
&=\left(M\cap\overline{B}\right)\cup\left(M\setminus M^*\right)\\
&=\overline{B}\setminus\{\infty\}\\
&\cong \overline{\mathbb{B}^n}\setminus\{0\}\\
&\cong\mathbb{R}^n\setminus\mathbb{B}^n
\end{align*}$$
Now suppose there is a precompact open subset $U$ of $M$ such that $M\setminus U$ is homeomorphic to $\mathbb{R}^n\setminus\mathbb{B}^n$. As $\left(M\setminus U\right)^{\circ}=M\setminus\overline{U}$ (an identity which follows from $Y^{\circ}=X\setminus\overline{X\setminus Y}$ for any subset $Y$ of a topological space $X$) then using the inversion map, we see that $M\setminus\overline{U}\cong\mathbb{R}^n\setminus\overline{\mathbb{B}^n}\cong\mathbb{B}^n\setminus\{0\}$. Set $V=\left(M\setminus \overline{U}\right)\cup\{\infty\}$ so that $V$ is an open neighborhood of $\infty$ in $M^*$ (we have that $M^*\setminus V=\overline{U}$ is compact). Finally, observe:
$$V\cong\left(V\setminus\{\infty\}\right)^*=\left(M\setminus\overline{U}\right)^*\cong\left(\mathbb{R}^n\setminus\overline{\mathbb{B}^n}\right)^*\cong\left(\mathbb{B}^n\setminus\{0\}\right)^*\cong\mathbb{B}^n$$ which demonstrates that $M^*$ is locally Euclidean at $\infty$.$^{2}$ It is easily shown that $M^*$ is Hausdorff, second countable, and locally Euclidean away from $\infty$.
$1$. Follows from exercise 4-23.
$2$. Follows from exercise 4-26.