United slipped to their seventh defeat in nine games at Old Trafford as goals from Bernardo Silva and Leroy Sane pushed the Citizens back to the top of the table.
Despite a bright start, which saw two good chances fall to Marcus Rashford, United failed to capitalise on their early possession and were worn out by the pressing City side.
After City’s first goal, it was game over. United seemed deflated and several key stars were accused of going missing, with Solskjear unable to breathe any enthusiasm in the team.
United now face an uphill battle to get into the top four spots and secure Champions League football for next season, as they prepare to face fourth-placed Chelsea – who they are four points behind – on Sunday.
According to MailOnline, Woodward reportedly held discussions with Solskjaer and Phelan at the club’s Carrington training ground to discuss the mounting problems facing the club after Wednesday’s defeat.
United chiefs were reportedly incensed that the line-up for Wednesday’s derby had leaked hours before kick-off, revealing that Matteo Darmian had been recalled to the team
With a huge summer rebuild needed, United are reportedly set to wave goodbye to up to seven first-team squad players.
Alexis Sanchez, Paul Pogba, Romelu Lukaku, Juan Mata, Ander Herrera and Antonio Valencia could all depart this summer, as United look to offload their overpaid flops.
Pogba is rumoured to be a target for Real Madrid, though the official stance from the club remains that he is not for sale.
Mata, Herrera and Valencia are all set to become free agents in the summer as their contracts expire at the end of the season.
Solskjaer himself admitted that it will take time to bridge the gap between United and the teams at the top of the table, as he prepares to wield the axe this summer.
The Norwegian declared that this Sunday’s game will be crucial in his side’s top four challenge, as they have the chance to move to within a point of the Champions League spaces.
“Sunday is a massive one,” he told MUTV. “Sunday is something that we have to get ready for, the crowd has got to get ready for, the players have got to get ready for.
“Of course we have analysed them and let’s just make sure we turn up on Sunday with the same attitude and a little bit more quality in front of goal.
“Hopefully we can get the win everyone here wants and the fans deserve, the players deserve.
“They have made a terrific effort to give us a chance with three games to go to be in the top four.”