Ferguson, a familiar sight in the Old Trafford director's box for years, signed an agreement with United in 2013 to be a club ambassador, receiving 2.16 million pounds ($2.82m) a year.
The split was amicable, according to a team source, who said it was one of a number of time-consuming responsibilities from which Ferguson was stepping back and that he was always welcome at Old Trafford.
There have been job cuts virtually across the board at United as part of cost-saving measures at the club, which has been incurring losses for some time.
Ferguson, who will step down from his ambassadorial duties at the end of the season, led United to 38 trophies, including 13 Premier League and two Champions League titles, before he retired from management in 2013.
United are currently in 14th place after finishing a worst-ever eighth in the Premier League last season, despite spending just over 200 million pounds on players in the close season.
They have splashed out about 600 million pounds on new players since their under-fire Dutch manager Erik ten Hag took charge ahead of the 2022-23 season.
It is not known whether the cost cutting will affect other United ambassadors including former players Andy Cole, Park Ji-sung, Dwight Yorke, Denis Irwin and Bryan Robson.