The club stated that the player will be departing once his contract expires on June 30, 2019.
The club confirmed this through a statement on their official website.
Olosunde who is eligible to play for Nigeria, joined Manchester United from New York Red Bulls in March 2016.
He, however, struggled with injuries in his final season at the club.
Olosunde began his career at Princeton Football Club, where he spent seven years before shifting to NYRB.
The club’s statement reads, “At this time of year, players’ contracts are set to expire at all levels within Manchester United as the squads start to take shape in advance of the upcoming 2019/20 season.
“While some will inevitably move on, the Under-23s welcome the older members of the Academy group, who step up to Premier League 2 football. An intake of first-year scholars then replaces them in the Under-18s. Of course, all players named on the actual retained list published by the Premier League remain under contract to the club.
“In terms of the first team, it has already been confirmed that Ander Herrera and Antonio Valencia are leaving United after distinguished service in the red shirt. Juan Mata, meanwhile, has been offered a new contract.
“At Under-23s level, the club has taken up the option to extend midfielder Aidan Barlow’s deal. Fresh terms have also been offered to keepers Alex Fojticekand Paul Woolston, plus Italian defender Luca Ercolani.
“Several players who spent time away from the club on loan last term will be seeking deals with new teams as they continue their careers elsewhere.
“Regan Poole helped Newport County reach the League Two play-off final, while Zak Dearnley (Oldham Athletic), Tom Sang(AFC Fylde), Callum Whelan (Port Vale), Matty Willock (Crawley Town) and James Wilson (Aberdeen) also had loans away from Old Trafford.
“Of course, both defender Poole and striker Wilson have represented the United first team.
“Matthew Olosunde, Tyrell Warren, DJ Buffonge, Callum Gribbin, Millen Baars and Josh Bohui have also been released, as has Under-18s goalkeeper James Thompson.
“We would like to wish all the players leaving the club the very best of luck for the future.” SHARE THIS NEWS USING ANY OF THE BUTTON BELOW PLACE YOUR TEXT ADVERT BELOW ⬇⬇⬇