Rangnick rejected United's opening contract offer before they submitted improved terms, including the consultancy role after his interim managerial stint ends.
Manchester United have announced the appointment of Ralf Rangnick as interim manager until the end of the season before he undertakes a two-year consultancy role at the club.
Rangnick, 63, is still awaiting a Governing Body Endorsement to officially start work at United. It is unclear if the German will manage the club against Arsenal in the Premier League at Old Trafford on Thursday. Michael Carrick will continue to manage the team until Rangnick receives a GBE.
Rangnick said: “I am excited to be joining Manchester United and focused on making this a successful season for the club.
"The squad is full of talent and has a great balance of youth and experience. All my efforts for the next six months will be on helping these players fulfil their potential, both individually and, most importantly, as a team.
“Beyond that, I look forward to supporting the club’s longer-term goals on a consultancy basis.”
The United football director John Murtough said: “Ralf is one of the most respected coaches and innovators in European football. He was our number one candidate for interim manager, reflecting the invaluable leadership and technical skills he will bring from almost four decades of experience in management and coaching.
“Everyone at the club is looking forward to working with him during the season ahead, and then for a further two years in his advisory role.”
Rangnick rejected United's opening contract offer before they submitted improved terms, including the consultancy role after his interim managerial stint ends.