The forward is reportedly frustrated after the Red Devils failed to reintegrate him into the first team set-up.
Mason Greenwood has reportedly told his friends that he will never play for Manchester United again.
Greenwood's alleged rape and assault charges were dropped in February, but the Red Devils have continued to undertake an internal investigation, stalling the forward's return to the pitch.
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Ten Hag is not fully satisfied with the defensive options at his disposal to partner Lisandro Martinez.
The 21-year-old forward, who was initially arrested in January 2022, expected to join Erik ten Hag's squad after the charges were dropped by the Crown Prosecution Service but that has not happened, leading to frustrations.
For now, the suspended striker has not been allowed to return to training, despite still earning £70,000 per week with his United contract running until the summer of 2025.
“Mason believes he's finished at United. He's sat at home kicking his heels and very frustrated. He wants to get back playing football but realises his situation is very complicated and it's his own doing,” a source told the UK’s The Sun.
“He is determined to play football again but doesn't think he'll ever pull on a United shirt ever again.”
Greenwood's arrest came after a woman accused him of physical and sexual abuse on social media, relating to a period between November 2018 and October 2021. The youngster was swiftly suspended by United, while Nike severed ties with him without compensation.
The forward was understood to have held extensive talks with United officials last month in the hope of reigniting his Red Devils career, emphasising his desire to return as soon as possible.
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The Brazilian is among the transfer options United will target in the next transfer window.
Legally, there is nothing stopping United from reintegrating Greenwood into their first-team squad, but his return presents a PR nightmare for the club given the damage he could cause to their image and brand, hence affecting their commercial deals.
There were also unconfirmed reports that United’s women’s team had vowed to quit the club if the youngster is allowed back in the first-team set-up.