Manchester United boss Erik ten Hag personally made the call for ties to be cut with Ralf Rangnick.
The new Austria coach was to remain in a consultancy role at United after taking charge on a caretaker basis following the sacking of Ole Gunnar Solskjaer last season.
However, ESPN says Ten Hag informed United chiefs he couldn't see himself working well with the German and recommended that ties be cut.
Ten Hag had been left unimpressed by Rangnick's public claims that United would "need ten new signings" this summer.
The former Ajax coach was also unhappy with Rangnick's insistence on a face-to-face meeting rather than doing their initial communication over the phone.
It was a blow for Rangnick, who had personally lobbied for Ten Hag to succeed him as United sought a permanent replacement for Solskjaer.
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