Woodward has been at the club since 2005 and has held his current position since 2012 when David Gill left Old Trafford.
Woodward’s tenure at United has not been without difficulties, with the club receiving widespread criticism for becoming one of the frontrunners for the controversial European Super League.
The 49-year-old appointed three managers in his time at the club but the Premier League title has proved elusive since Sir Alex Ferguson’s final season in charge.
"I am extremely proud to have served United and it has been an honour to work for the world's greatest football club for the past 16 years," Woodward said.
"The club is well positioned for the future and it will be difficult to walk away at the end of the year.
"I will treasure the memories from my time at Old Trafford, during a period when we won the Europa League, the FA Cup and the EFL Cup. I am proud of the regeneration of the club's culture and our return to the Manchester United way of playing.
"We have invested more than £1bn in the squad during my time here and I am particularly delighted with the progress the players have made under the astute leadership of Ole Gunnar Solskjaer and his coaching team in the last two years.
"I am sure that, with the changes we have made on-field and to the coaching and football staff in recent years, this great club will soon be lifting silverware again. It deserves to.
"I desperately wanted the club to win the Premier League during my tenure and I am certain the foundations are in place for us to win it back for our passionate fans."
