Phelan, the former United player, has been back in the Old Trafford dugout as assistant since Ole Gunnar Solskjaer was named the club’s caretaker manager, and Red Devils officials want to keep him around on a long-term basis.
However, the Daily Mail claim he will not be kept on as Solskjaer’s No2, with the 56-year-old to be offered the post of technical director – a position which has never before existed in the club’s history.
Phelan worked under Sir Alex Ferguson for over a decade, including a five-year spell as his assistant in the final stretch of Sir Alex’s reign as boss. He is well respected around Old Trafford and has supported Solskjaer throughout his rise from caretaker to permanent manager.