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The decision comes after United's worst-ever Premier League season
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Sir Dave Brailsford is set to step back from his Manchester United role after a year leading football operations, returning to his position as director of sport at INEOS.
The 61-year-old's departure forms part of a major summer reshuffle being orchestrated by United co-owner Sir Jim Ratcliffe, the petrochemicals giant's head.
Brailsford assumed control of football operations when Ratcliffe acquired his minority stake in the Red Devils, having previously stood down as team principal of INEOS Grenadiers.
Brailsford will resume his wider sporting responsibilities at INEOS while reducing his commitment to Old Trafford.
Sir Dave Brailsford will 'step back' from his duties as head of football operations
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During his tenure at United, Brailsford was instrumental in the £50million redevelopment plan for the club's Carrington training ground.
He also established the objectives for Mission 21, an initiative aimed at securing league titles for both the men's and women's teams.
Sir Jim Ratcliffe has credited the former cycling chief with overhauling the performance infrastructure at Manchester United, despite the club enduring its worst-ever campaign.
The Red Devils finished in a record-low 15th position and failed to secure any silverware, losing the Europa League final to Tottenham Hotspur.
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Manchester United endured their worst-ever Premier League season
ReutersThe club's dismal performance coincided with INEOS scaling back its sporting portfolio across multiple ventures.
The petrochemicals company has terminated its sponsorship agreement with New Zealand's All Blacks rugby team and withdrawn from pursuing the America's Cup sailing competition.
INEOS also cut an advertising arrangement with Tottenham Hotspur, marking a significant reduction in its sporting investments.
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The restructuring extends to INEOS Sport's management of Nice, Manchester United's sister club, which will return under Brailsford's oversight following their failure to qualify for the Champions League.
Nice had been operating under a "blind trust" arrangement to comply with UEFA's multi-club ownership regulations.
The management upheaval at Old Trafford has been extensive since INEOS assumed control of football operations.
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Director of football Dan Ashworth departed, costing the club £4.1million in compensation, after they paid £5million to get him out of his Newcastle contract just five months earlier.
Additionally, approximately 450 staff members have been made redundant as part of comprehensive cost-cutting measures.
Erik ten Hag was also dismissed from his managerial position, despite receiving initial backing during INEOS's first summer overseeing the club.
It cost £10.4million to relieve him and his staff of their duties.
Geraint Thomas will assume a senior leadership position at INEOS's professional cycling team upon his retirement as a rider at the season's end.