Solskjaer, who was forced to retire from the game last summer because of persistant injuries, will take charge of United's second string from the start of the coming season in place of Brian McClair and Jim Ryan.
"Ole is doing very well with his coaching, and this will be a progressive step in finalising his coaching badges," first team boss Sir Alex Ferguson told the club's official website.
"He has the right character to become a top coach and I am sure he will do that."