Sir Alex Ferguson will stay at Manchester United after he retires as manager.

Ferguson has confirmed he will remain at Old Trafford in some capacity when he steps down as manager at the end of next season.

He reiterated he will not continue as manager and instead will take up some role separate from the first team.

He said: ''It will certainly not be team manager but, hopefully, something will be worked out between the club and myself.

''In terms of management this has been the pinnacle of my career. I think I've picked the right moment to retire, but equally so I would love to stay on in any capacity which does not interfere with the football.''

United have already offered Ferguson a position as head of the club's youth development policy and the two sides have been discussing his future role for several months.

Ferguson is interested by their offer and said: ''It's something I take great pride in and still do and we'll see what happens in the next few weeks.''

Ferguson, though, feels it would be hard for him to help choose his successor when the time comes.

''I think that would be a very difficult thing to do,'' he said.

''The directors may speak to me and I don't know what their intentions are. They will have a lot on their minds about that and I don't think they will be doing anything about that until next year.''

Striker Dwight Yorke was thrilled by Ferguson's pledge to stay at Old Trafford. ''It's wonderful news for everyone,'' he said. ''From my point of view he's the one responsible for me coming to Old Trafford.He knows exactly what I can do and I don't have to prove or justify anything to him.

''It's just nice to have him about with his wealth of experience. He's a winner and that's what this club needs all the time.''

Shareholders at United also welcomed the news and they have long campaigned for Ferguson to stay. The shareholders group feel United should offer him the post of chairman.

Alternatively if Ferguson does not want to become chairman, they believe he should be offered either a seat on the football club board or a place on the plc board as a non-executive director.

Shareholders United spokesman Oliver Houston said: ''The club should not only think about him serving as a director. Many people see him as an ideal candidate for the chairmanship of the club board, the post held by Martin Edwards.''