The 49-year-old took the post at Old Trafford in 2013 and played a key role in the now stuttering Super League and has paid the price for its imminent collapse.
It is understood he will continue in his role with United until the end of 2021.
Neville, who has been a vocal critic of the Super League plans in the days since its shock announcement on Sunday evening, appeared to mark Woodward’s departure with a ‘waving’ emoji on Twitter minutes after the news broke.
The club later confirmed his exit.
Woodward’s exit is understood to be amicable with the owners and is said to be unrelated to the Super League although the timing is striking.
Chelsea sparked the chaos on Tuesday evening with Manchester City later confirming they had withdrawn from the breakaway competition.
Additional reporting by PA
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