As part of his role, the Dane will attend various events and functions on behalf of the club, promoting the work it does within the community and with its partners, sharing anecdotes from his time at Old Trafford.
Schmeichel played for United for eight years from 1991 to 1999 and his accolades include five Premier League titles, three FA Cups and a Champions League.
The iconic stopper was part of the celebrated '99 Treble-winning team and played with the likes of Ryan Giggs, Paul Scholes, Roy Keane and Denis Irwin.
Schmeichel said: "It’s a great honour to be an ambassador for Manchester United. I spent many happy years at the club and achieved some of my greatest sporting accolades whilst playing here, so I was delighted to be asked to take up this role.
"I am looking forward to working with United again and sharing my experiences, as well as catching up with some of my former team-mates."
Other United ambassadors include Sir Bobby Charlton, Bryan Robson, Gary Neville and Andrew Cole.