Mason Greenwood has not played for Manchester United since January 2022
Greenwood was arrested in January 2022 following allegations surrounding material which was published online.
Charges against the 21-year-old England international, including attempted rape and assault, were dropped on 2 February 2023.
United said in a statement: "All those involved, including Mason, recognise the difficulties with him recommencing his career at Manchester United.
"It has therefore been mutually agreed that it would be most appropriate for him to do so away from Old Trafford, and we will now work with Mason to achieve that outcome.
"Based on the evidence available to us, we have concluded that the material posted online did not provide a full picture and that Mason did not commit the offences in respect of which he was originally charged. That said, as Mason publicly acknowledges today, he has made mistakes which he is taking responsibility for."
In a statement, Greenwood accepted he had "made mistakes" and took his "share of responsibility", but added: "I did not do the things I was accused of."
He said: "Today's decision has been part of a collaborative process between Manchester United, my family and me. The best decision for us all is for me to continue my football career away from Old Trafford, where my presence will not be a distraction for the club. I thank the club for their support since I joined aged seven. There will always be a part of me which is United.
"I am enormously grateful to my family and all my loved ones for their support, and it is now for me to repay the trust those around me have shown. I intend to be a better footballer, but most importantly a good father, a better person, and to use my talents in a positive way on and off the pitch."
Greenwood, whose contract at Old Trafford runs until 2025, could now be sold, or loaned to another club for the remainder of his contract.
He remains on full pay but will not return to training with United.
-- Courtesy of BBC Sport