Per the source, the experienced midfielder has been deemed surplus to requirements and United have instructed him to find a new club.
The 32-year-old has been banished to train with the reserves and Jose Mourinho has not included him in any match-day squad or provisional squad so far this season.
Schweinsteiger has fallen down the pecking order at United and Mourinho has no plans for the former Germany international this season.
The former World Cup winner does however, still have another two-years remaining on his contract still worth £17 million.
United will have to negotiate an exit deal with Schweinsteiger if he is set to leave and the Red Devils would be willing to accept a cut-price fee of £2 million.
The latest development could see Galatasaray match United’s new valuation and make an offer.
The Lions have been pushing for a loan deal a source close to the club told Turkish-football.com.
Turkish sports paper AMK report that the Lions want Schweinsteiger on loan and are willing to pay up to €3.5 million of Schweinsteiger €6.5 million salary.
Galatasaray – 2016-17 Season Preview