Butt spent nine years bringing through United’s next batch of academy talent and was instrumental in the promotion of the likes of Marcus Rashford, Scott McTominay, Axel Tuanzebe and Mason Greenwood into the first team.
A youth player from the United setup himself, Butt won six Premier League titles, one Champions League and three FA Cups under the legendary Sir Alex Ferguson before leaving to continue his playing career with Newcastle United.
“Having come through the academy myself to play almost 400 games for Manchester United, it has been an absolute privilege to come back and work with a new generation of talent making that same journey,” the former midfielder told the club’s website.
“I’m proud of the role everyone on the staff plays in giving our young footballers the best possible chance of fulfilling their potential, and the results are clear to see in the increased number of homegrown players reaching the first team.
“I already know from my playing days how difficult it is to leave Manchester United, but it feels like the right moment for a new professional challenge and I look forward to exploring opportunities that build on the great experiences I’ve had here over the past nine years.”
United manager Ole Gunnar Solskjaer added: "Nicky will always be a legend of United as a six-time Premier League winner and, of course, an integral part of our treble-winning team.
"That pedigree has made him a great source of guidance and inspiration to our academy players since he returned to the club. We are all going to miss him but Nicky knows he will always be welcome back."
