Rene Meulensteen, Manchester United's first team coach under Sir Alex Ferguson, is reported to still be negotiating his redundancy package in an increasingly bitter pay dispute with the Premier League champions.

The 49-year-old spent 12 years with the club working alongside Ferguson, but has been deemed surplus to requirements following the appointment of David Moyes as the new manager of the Red Devils.

However, unlike those of assistant manager Mike Phelan and goalkeeping coach Eric Steele, the departure of Meulensteen has yet to be confirmed by Manchester United, and he remains an employee of the club.

The Dutchman has yet to reach an agreement with Manchester United over his payoff, and is becoming frustrated at his treatment having helped deliver a number of honours during over a decade at Old Trafford.

"Rene is really disappointed at what is happening. His representatives are trying to sort it out," a source close to Meulensteen is reported to have told The Sun.

"He loves United after so many years there and is sad about leaving.

"But he can’t believe the way the club are handling his departure."

Meulensteen is regarded as one of the best coaches in the world following his work with Manchester United, and drew praise from Robin van Persie for his role played during the club's title winning campaign.

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