The Reds boss made the shock announcement on Wednesday morning and will take charge of his final game against West Brom on 19 May, before adopting a new role as a club ambassador and director next campaign.
When asked if he saw the decision coming, former Reds goalkeeper Schmeichel explained how the news has left him saddened, particularly after this term’s title triumph.
“I am shocked,” Peter said. “This has come as an absolute bombshell; I really didn't see it coming. I am sad and disappointed. I was really happy with what we have done this season, bringing the Premier League trophy home, so I am shocked.
However, the legendary Dane, who famously captained United to UEFA Champions League glory during his final outing in 1999, was keen to praise his former boss and shed some light on exactly why he is regarded as the greatest of all-time.
“The thing about Sir Alex is that for 95% of the players he has brought in over the 27 years, he has scouted them all for a long time,” Peter explained. “It is not just about what you do on the pitch, it is also about your personality and how you handle situations surrounding football, like the media.
“How a player is with the public and stuff like that is very important to him. He wants the players to understand that everybody wants a piece of Manchester United. He wants the players to represent the club in the best possible way.