The Dutchman has been under scrutiny all season due to United's failed Premier League title campaign and inability to progress past the group phase of the Champions League.
The club are currently four points off a Champions League spot with three games left to play, and they have a chance of winning the FA Cup after making it into the final.
It has been widely reported that former Chelsea manager Jose Mourinho is waiting in the wings to take over, but instead of arriving at Old Trafford this summer, the latest rumours are that the Portuguese coach has been asked to wait 12 months, when Van Gaal's contract expires.
According to The Times, United would have to give Van Gaal a £5m payoff, which is 66% of his £8m salary, if he is dismissed from his job before his contract expires in the summer of 2017.
If the Dutchman is sacked and then takes another job before the end of next season, then the initial payment does not stand.