The Norwegian is on the brink of the sack after a 4-1 defeat at Vicarage Road saw his side slip to seventh in the Premier League, having lost five of their last seven outings.
It's understood an emergency meeting took place between the club's hierarchy at 7pm on Saturday as to whether Solskjaer continues in his position.
One of the topics of the conversation was the compensation the Norwegian will receive as the club's hierarchy will now look for a new manager to take charge at Old Trafford.
Two names who have been linked to replace Solskjaer are former Real Madrid manager Zinedine Zidane and Leicester City boss Brendan Rodgers - despite the latter distancing himself from the role.
For Solskjaer though, it looks set to be a bitterly disappointing end after what promised to be an extremely exciting season before a ball had been kicked.
The signings of Raphael Varane, Cristiano Ronaldo and Jadon Sancho had meant that there was a lot of optimism surrounding the club as they looked to win their first league title since 2013.
However that has not proven to be the case and after twelve games, the club sit as many points behind league leaders Chelsea.