Sir Alex Ferguson is set to step back from his ambassadorial role at Manchester United at the end of the season, a source told ESPN.

The decision has been taken as part of a cost-cutting drive at the club put in place following Sir Jim Ratcliffe's purchase of a minority stake in February.

It comes after United finalised the redundancies of 250 members of staff in a bid to save around 45 million ($58.8m).

Ferguson has been a club ambassador since 2013 following his decision to retire as manager after more than 25 years at the helm.

The role has earned the legendary former boss more than 2m annually and a source has told ESPN that the agreement has been ended as part of "cost-saving measures across the board."

A club source told ESPN that the 82-year-old "will always be welcome at Old Trafford" with the decision described as "amicable" and "suiting both parties."

However, Eric Cantona, who played a leading role in Man United's first four Premier League titles under Ferguson, called the decision "totally scandalous."

"Sir Alex Ferguson should be able to do anything he wants at the club until the day he dies," Cantona, who played for United between 1992 and 1997, posted on Instagram. "Such a lack of respect. It's totally scandalous. Sir Alex Ferguson will be my boss forever! And I throw them all in a big bag of s---!"

Ferguson won 13 English league titles during his time as manager between 1986 and 2013. He also won the Champions League in 1999 and 2008 along with another nine domestic cup successes. He remains the last United manager to lead the club to the Premier League title.

He has been a regular visitor to Old Trafford in the 11 years since his retirement while also holding a seat on the club's ceremonial football board.

A source told ESPN that Ferguson, who turns 83 in December, will also step back from other roles over the course of the next year, some of which are not related to United.