Carrick's dismissal reportedly followed discussions involving minority owner Sir Jim Ratcliffe, chief executive Omar Berrada and director of football Jason Wilcox during a meeting in Monaco.
Sky Sports reported that Ratcliffe ratified the decision following recommendations from Berrada and Wilcox.
The former Manchester United midfielder was appointed interim head coach in January 2026 after the departure of Ruben Amorim.
His initial spell produced encouraging results, with United winning 11 of his first 16 matches and securing third place in the Premier League, earning qualification for the UEFA Champions League.
Following that achievement, the club confirmed his permanent appointment on May 22, 2026, handing him a two-year contract running until 2028.
The appointment was widely welcomed after Carrick helped restore confidence and improve the team's performances during the second half of the previous campaign.
BBC Sport
However, his second spell in charge proved significantly more difficult.
According to Reuters, United managed just three victories in 15 matches across all competitions this season, including only one win in their opening 10 Premier League fixtures.
The team's struggles culminated in an 18th-place position, increasing pressure on the coaching staff and club management.
The club's latest setback came during a 4-4 draw against Aston Villa, despite United recovering from a two-goal deficit to secure a late equaliser.
Sky Sports reported that United have reached a verbal agreement with former Tottenham Hotspur and Chelsea manager Mauricio Pochettino to take over.
However, Manchester United's official confirmation of the managerial change and Pochettino's appointment remained pending in the reports available at publication time.
Sky Sports
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