Ralf Rangnick says he and Manchester United agreed it was in the best interests of both parties that he did not take up a consultancy role with the club.
The Red Devils on Sunday announced that Rangnick would not be staying on at Old Trafford.
Rangnick was appointed as interim manager after Ole Gunnar Solskjaer was sacked by the Premier League club last November.
The German was due to take up an advisory position with United, but it appeared unlikely he would stay on after he was named as Austria head coach last month.
With Erik ten Hag having since been appointed as United manager, Rangnick’s short time in England is over.
Rangnick said in a press conference: “After the last game against Crystal Palace one week ago, I had some talks with people in charge at Manchester United, with the board that I have been in close contact with before.
“And over the last few days, we came to the conclusion that, for Manchester United, but especially for me, it would be better when I focus on my task as head coach of the Austrian national team.
“Then we decided to mutually resolve this contract as their advisor, to not let it become valid.”
United finished the 2021-22 season sixth in the top flight, a mammoth 35 points adrift of champions Manchester City.
Rangnick’s points-per-game (1.5) and win percentage (42 per cent) are both the lowest of any United manager in the Premier League era, while the 58 points they finished the season with is also their lowest tally in the competition.
The Red Devils have failed to win a trophy since 2017, while they last won the Premier League title in Alex Ferguson’s last season in charge in the 2012-13 campaign.