The German was due to move into a consultancy role behind the scenes at Old Trafford following his stint as interim manager before the arrival of Erik Ten Hag.
Rangnick, hailed as a progressive appointment at the time, struggled to knit together a coherent team as United finished sixth and missed out on Champions League football.
While he had been expected to feature in this summer’s planning as Ten Hag attempts what looks like a huge rebuilding job, Rangnick will devote all of his team to managing Austria.
“We would like to thank Ralf Rangnick for his efforts as interim manager over the past six months,” read a club statement.
“By mutual agreement, Ralf will now focus solely on his new role as manager of the Austria
national team and will not therefore be taking up a consultancy role at Old Trafford.
“We would like to wish Ralf the best of luck in this next chapter of his career.”
