The news came amid widespread speculation a planned European Super League is set to collapse.

Woodward was reportedly one of the driving forces behind the planned 12-team breakaway, which was announced on Monday (AEST).

The proposals proved hugely unpopular and drew widespread criticism from fans, pundits and players – including United's own Marcus Rashford and Luke Shaw – along with managers and politicians, with UEFA promising harsh sanctions for the clubs involved.

It is understood the 49 year-old Woodward was already set to leave the club at the end of 2021 and that he will continue to fulfil his duties until then.

Woodward's departure is said to be an amicable one and not related to the European Super League.

Often a decisive figure with United's fanbase, Woodward effectively acted as the club's chief executive, having previously advised the Glazer family during their takeover at Old Trafford in 2005.

Woodward took on a commercial role at the club two years later, before being appointed as an executive vice-chairman in 2012, following David Gill's retirement. 

Though he helped secure big-money signings such as Paul Pogba and Bruno Fernandes, Woodward's running of United has drawn much criticism.