The 32-year-old, whose deal expires this summer, has announced via Twitter that the club will not be renewing his terms.
Owen wrote: "The Manager informed me after our testimonial match on Tuesday that the club would not be offering me a new contract."
It will bring an end to a three-year spell at Old Trafford marred by injuries.
The former Liverpool, Real Madrid and Newcastle forward joined United on a free transfer in summer 2009 but was unable to reignite his once glittering career.
He made just four appearances in the season just ended and has not played competitively since November due to a thigh injury.
Owen wrote: "I have loved every minute of the 3 years I have spent at such a fantastic club.
"I would like to thank the players, staff and fans for their support and wish them well for the future.
"I now plan to have a short holiday during which I will contemplate my next move."
Source: PA
Source: PA