The sportswear giant has been the Red Devils' kit sponsors for 12 years but say the club's offer to extend the agreement beyond next season "did not represent good value"
The sportswear giant has been kit sponsors of the Premier League club for the last 12 years - taking over from former suppliers Umbro - with the upcoming campaign scheduled to be the last of their current deal.
Recent reports had suggested that Nike and United had failed to reach an agreement over an extension, and the US company confirmed on Tuesday they did not feel the terms demanded by the club were acceptable.
"Manchester United is a great club with passionate fans," Nike said in a statement released to Perform.
"We are proud to have partnered with them for the last 12 years and will continue to sponsor the club until the end of the 2014-15 season.
"Any partnership with a club or federation has to be mutually beneficial and the terms that were on offer for a renewed contract did not represent good value for Nike’s shareholders.
"We look forward to a successful final season with the club."
United unveiled their kit for the 2014-15 campaign on Monday, complete with new shirt sponsor Chevrolet.