United announced on Sunday that Ashworth is leaving his sporting director role by mutual agreement after just five months at the club.
He joined on July 1 from Newcastle United following a lengthy period of gardening leave but an exit has now been formalised.
United seemingly eyed a different appointment beforehand though as per a report from ESPN.
INEOS are said to have spoken to the Liverpool CEO Edwards, who was previously sporting director during Jurgen Klopp's glittering tenure.
These conversations came before Sir Jim Ratcliffe's chemical giants completed their 27.7 per cent minority stake purchase in February.
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However Edwards, who was out of work at the time, rejected the opportunity to move to Old Trafford and then returned to Liverpool.
Ashworth and United CEO Omar Berrada had a meeting after their 3-2 defeat to Nottingham Forest on Saturday night.
He oversaw their near £178million spending spree in the summer in which they signed players including Leny Yoro, Matthijs de Ligt and Manuel Ugarte.
However, with United currently sitting 13th in the Premier League table, it's clear that their new additions haven't yet worked out.
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Ashworth played a key role in the club's decision to extend Erik ten Hag's contract until 2026 before he was sacked in October.
Ten Hag was replaced by Ruben Amorim, but this appointment was spearheaded by Berrada instead of the then sporting director.
Sources have said that there was a clash of personalities between the two.
Ratcliffe is also believed to have played a key role in their decision to part ways at United.
Furthermore, Ashworth was in favour of hiring an English manager, with former Three Lions boss Gareth Southgate his key target.
Amorim was the chosen man though, with Ashworth now set to leave the club's setup despite such a short spell in charge.
United's defeat to Forest was their sixth of the season and leaves them on 19 points from a possible 45.
They are already eight points adrift of the top four and outside of the automatic last 16 qualification spots in the Europa League.