Since his retirement as manager in 2013, the 82-year-old has acted as a global ambassador and club director and has regularly attended games each year.
The club says United's most successful manager will always be welcome to games despite him leaving the role. The decision was taken following a direct conversation between the Scot and co-owner Sir Jim Ratcliffe last week.
Ferguson has been paid a multi-million-pound sum by United since being in the role and now with Ratcliffe looking to cut costs at the club in order to invest more money in the team it was always going to be an option to cut ties with the iconic Scottish manager.
Last month, United announced a £113m net loss. Over 250 staff members have been made redundant that could save the club over £10m a year which with the side being 14th and without a title since Ferguson’s retirement could be useful in the upcoming transfer market to help bolster the squad.