The competition will enable nearly 500 children aged between 12 and 15 years old vie to secure a once-in-a-lifetime opportunity to take part in a training camp with Manchester United Soccer Schools coaches at the club's Aon Training Complex.
The tournament comprises of 19 boys' teams and 12 girls' teams, with 18 boys and four girls winning the chance to attend the training camp in the UK later this year.
After helping launch the initiative, Schmeichel took some time to meet with fans at the Bahrain City Centre shopping mall in Manama.
The former keeper commented: "I've been amazed by the passion of the United fans here in Manama and the welcome I've received has been fantastic. The VIVA Manchester United Soccer Schools initiative is a brilliant opportunity to get kids from all communities playing football, and gives us a chance to perhaps unearth the game’s next big star."
Ulaiyan Al Wetaid, CEO of VIVA, added: "The VIVA MUSS programme is one of several grassroots initiatives we have been involved with to raise the standard of football across Bahrain. Over the past three years, the programme has evolved into a great community development initiative and has experienced impressive growth in terms of participation and interest from local youngsters.