Mike Phelan wants assurances from the Manchester United board before he agrees to stay at Old Trafford.
Phelan returned to United in December as Ole Gunnar Solskjaer's assistant and has played a key role in their revival.
Solskjaer became United's permanent manager last week with Phelan, 56, expected to follow suit in the coming weeks.
But the Mail reports Sir Alex Ferguson's former No.2 is still considering his position and held talks with the club on Wednesday.
It is reported Phelan has been discussed as a possible candidate for the club's technical director role, with Old Trafford chief Ed Woodward hoping to have someone in place before the start of next season.
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Phelan is said to have concerns over the current management and recruitment systems in place within the club.
He wants a greater line of communication between the board and the coaching staff and is open to taking on a different role within Carrington, although he wants to stay on as Solskjaer's assistant.
Phelan is still sporting director at A-League side Central Coast Mariners and has previously suggested he would like to retain some role with the club.
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Speaking earlier this week, Solskjaer admitted he was confident Phelan would soon put pen to paper.
"I think Ed and Mike will get things sorted very soon. He’s a key part of the club," the Norwegian boss said.
Phelan played for United for five years before returning as a coach under Sir Alex Ferguson.
Solskjaer's men are not in domestic action this week but return to the Champions League on Wednesday night when they take on Barcelona at Old Trafford.
