The 41-year-old, who had a decorated playing career at Old Trafford over a 12-year period, has earned the position after working as reserve team and under-19s coach for the last four years.
Butt was a product of United's youth system himself and is looking forward to helping create the next generation of stars.
"It's a privilege to take on this role," Butt, who made 387 United appearances, winning six Premier League titles, three FA Cups and a Champions League, told the club's official website.
"As someone who learned his trade in the United youth set-up, it's a huge honour now to be given the chance to lead the academy and to instil its values and attitudes to continue to create future generations of Manchester United players.
"It's a big challenge but I am fortunate to be taking over a dedicated, first-class team. Our aim remains the same - to keep supplying the first team with well-coached, rounded players that understand the responsibility of playing for the biggest club in the world."
I think Giggs just missed out on that opportunity, if he had retired perhaps a year or two earlier he could have already gained experience with the youngsters and be ready for first team action. Good for Nicky Butt though, hope he does well. It would be amazing to have him and Giggs one day
Manchester United appoint highly-rated Henny de Regt as academy scout as part of youth system revamp
Manchester United’s academy revamp continues at pace with the appointment of former Ajax scout Henny de Regt. The Dutchman has been brought in to assist head of youth recruitment Derek Langley and gets to work straight away. Executive vice-chairman Ed Woodward promised that the ‘root-and-branch’ review of the youth system was complete and major changes would follow suit.
Butt is keen to hit the ground running and restore United’s academy back to former glories.
UNITED ACADEMY STAFF
Nicky Butt - head of academy Derek Langley - head of youth recruitment Henny de Regt - academy scout
i'm sorry but thats pathetic really, if you're going to do a revamp go in hard for it, how about not actually pocketing the money and spending some money on the youth, hell even if it detracts from that 250 million kitty for the summer. Rather see it being used on a decent stadium for the youngsters