The former England midfielder had been under constant scrutiny since being appointed on a permanent basis this season, having previously guided Utd to a third-place finish during his interim spell in charge.
However, a disappointing start to the new Premier League campaign has seen Carrick's side slip into the relegation zone. The team currently sit 18th in the table, with just eight points from their opening 10 matches, including only one victory.
Former Tottenham Hotspur and Chelsea manager Mauricio Pochettino is reportedly being lined up as Carrick's replacement and is expected to take charge ahead of Manchester United's clash against Liverpool at Anfield on Sunday.
Pochettino is set to leave his position as head coach of the United States national team to take over at Old Trafford.
In an official statement, Manchester United confirmed Carrick's departure, while paying tribute to his contribution to the club.
A club statement read: "Manchester United can confirm that Michael Carrick has departed his role as men's first-team head coach.
Michael rejoined the club in January and guided the team to a third-placed Premier League finish by winning 12 out of the remaining 17 games of the 2025/26 season, accumulating the highest points tally in the league during that period.
"After a disappointing start to the season, the club has come to the extremely difficult conclusion that a change is necessary in order to achieve our ambitions.
"Michael is, and always will be, a Manchester United legend. Just as he did as a player, he has conducted himself with the highest standards of dedication and professionalism throughout his time back with the club. His leadership and achievements last season will always be fondly remembered.
"The club intends to appoint a permanent successor as quickly as possible."