Can't confirm this but word among Man Utd supporters is that he's been told he'll have chronic problems for the rest of his life if he keeps playing so he's virtually done already. One person who seems to be close with the Academy there said the main reason he's being allowed to see out his contract is so he can be rehabbed for quality of life post-football rather than a return to play, with the club helping him get qualifications as he transitions to being part-time and then retiring at the end of the season, much like how they supported keeper Paul Woolston when injury forced him to retire.
Shame to see such a promising career end the way it has, guy could have been one of the world's top defenders had injuries not completely disintegrated his knee. Maybe he'll get a job as a youth coach at United or Blackburn once he's got his qualifications?