The Genius Media Nigeria reports that the decision was made after a five-hour emergency meeting on Saturday night, following United’s 4-1 defeat away to Watford.
Joel Glazer, the club’s co-chairman, is expected to approve the decision before an official announcement is made.
Solskjaer’s departure comes following a run of five defeats in seven Premier League fixtures.
The club legend took over from Jose Mourinho on an interim basis in December 2019 before taking the job full-time the year after.
According to reports in the Manchester Evening News, Darren Fletcher is now expected to be appointed on a temporary basis..