Waters Reach, an approach road to the club’s 75,000-capacity Old Trafford home, will now be called Sir Alex Ferguson Way.
Ferguson spent 26 years as United manager, guiding them to two Champions League wins and 13 Premier League titles.
And, at a ceremony held at Trafford Town Hall, Ferguson spoke of his pride at becoming only the third recipient of the freedom of the borough.
“I thank everyone for being here, my friends, family and my wife and boss. She picked all the winning teams by the way,” he said.
“It’s a privilege and an honour to have a road named after me. You don’t expect these things and it encapsulates the 26 years. I’m really proud of that.”