The former Red Devils midfielder, 44, was head of the club’s academy but will now report to manager Ole Gunnar Solskjaer in the hope of creating “a seamless journey for young players stepping up to the next level.”
Butt, who made 387 appearances for United, told the club’s official website: “Manchester United is in my DNA and this is a very proud moment for me as I take on this new role.
“I am passionate about nurturing, developing and coaching the talent we have here to become top players at this club.”
Nick Cross will replace Butt as the head of the academy.
Executive vice chairman Ed Woodward believes the restructure will help United’s young stars make the step up to the first team.
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