Waters Reach, which runs adjacent to United's stadium, has been renamed Sir Alex Ferguson Way by Trafford Borough Council.
The permanent tribute further acknowledges the contribution Ferguson made to the area on a day in which he is also awarded the Honorary Freedom of the Borough of Trafford.
A special ceremony was also due to take place at Trafford Town Hall for the 71-year-old, who retired earlier this year after 26 successful years at the United helm.
Ferguson won 13 Premier League titles and two Champions League titles with United, and said: "I am delighted to accept this from Trafford Council.
"When I arrived at Old Trafford in 1986 I had little idea of the journey that awaited me.
"Over a quarter of a century later, to receive the Freedom of the Borough of Trafford, and to have a part of Trafford carrying my name, is truly humbling."
Sir Alex Ferguson Way is close to another stadium approach road, Sir Matt Busby Way, named after one of his illustrious United predecessors.
The Honorary Freedom is the highest honour which the council can bestow and recognises an eminent contribution to services in the borough.
Councillor Matt Colledge, leader of the council, said: "Sir Alex has contributed significantly to Trafford over a sustained period of time through his strong leadership of the Manchester United team and it was felt that the Honorary Freeman title and the renaming of the street was a fitting tribute to him.
Source: PA
Source: PA