The former United manager, 82, won 13 Premier League titles and two Champions League crowns in a huge trophy haul during nearly 27 years at Old Trafford.
The Athletic reported that the decision had been made amicably, with Ferguson stepping down from the global ambassador role when the season ends.
Ferguson, a regular at matches since he stepped down in 2013, will remain a non-executive director of the football club board.
It comes as part of a wider cost-cutting exercise at United under INEOS, which has had responsibility for football operations at the club since its founder Jim Ratcliffe completed the purchase of a minority stake earlier this year.
Last month United posted losses of £113.2 million for the year ending June 30, 2024 - their fifth straight years of losses.
But the club said they comply with the Premier League's profitability and sustainability rules.
United have instigated several cost-saving measures, including a redundancy program that cut about 250 jobs.
They are 14th in the Premier League after a poor start to the season, with manager Erik ten Hag under intense pressure ahead of Saturday's game against Brentford.
