The former Old Trafford and England midfielder has completed his coaching badges and is working under United's reserve coach Warren Joyce.
Butt, who made almost 400 appearances for United, is using the opportunity to gain some experience and Sir Alex Ferguson is pleased to welcome back a 'fantastic servant' of the club.
"Nicky is with the reserves," the United boss told the club's official website.
"He's completed his badges and is just getting a bit of experience with us so there's every chance of that [him going into management].
"He's had a few opportunities to take on jobs but wanted just a wee bit of a chance to revisit the training ground again to get himself back into sync, which we're happy to do because he was a fantastic servant to us.
"I don't know what his long-term future is but, in the meantime, he's helping out with the reserves."
Butt, who made almost 400 appearances for United, is using the opportunity to gain some experience and Sir Alex Ferguson is pleased to welcome back a 'fantastic servant' of the club.
"Nicky is with the reserves," the United boss told the club's official website.
"He's completed his badges and is just getting a bit of experience with us so there's every chance of that [him going into management].
"He's had a few opportunities to take on jobs but wanted just a wee bit of a chance to revisit the training ground again to get himself back into sync, which we're happy to do because he was a fantastic servant to us.
"I don't know what his long-term future is but, in the meantime, he's helping out with the reserves."
