The Red Devils legend was relieved of his duties on Thursday morning after overseeing just one victory in the club's opening 10 Premier League matches, leaving United languishing in 18th place with eight points.
"After a disappointing start to the season, the club has come to the extremely difficult conclusion that a change is necessary in order to achieve our ambitions," the club wrote in an official statement.
"Michael is, and always will be, a Manchester United legend. Just as he did as a player, he has conducted himself with the highest standards of dedication and professionalism throughout his time back with the club.
"His leadership and achievements last season will always be fondly remembered."
Carrick returned to Old Trafford in January following Ruben Amorim's departure, initially taking charge until the end of the 2025/26 season.
The 45-year-old enjoyed an impressive interim spell, guiding the Old Trafford giants to 12 victories in their remaining 17 league matches and accumulating more points than any other English top-flight side during that period.
His awe-inspiring turnaround secured a third-place finish and Champions League qualification, prompting the club's hierarchy to reward him with a two-year contract in May.
However, barely six months after his permanent appointment, a dramatic slump in form brought his tenure to a premature end, with United recording fewer victories than any other Premier League side this season and enduring their worst start to a domestic campaign in 40 years.
Despite the wider issues plaguing Manchester United, James, who represented Liverpool and Manchester City during his playing career, insists the former Middlesbrough manager must take responsibility for the team's disappointing performances.
'It's tough, but that's football'
"No, no, no," James told Flashscore when asked whether the former England midfielder had been treated harshly.
"Do you know what? I think the difficulty with Michael Carrick's situation is that, yes, there's a lot of noise outside.
"There are also a lot of issues from the top down, and we're constantly hearing that it's his fault, their fault, someone else's fault, and so on.
"Ultimately, the coach or coaching staff are the ones who prepare the team to play football matches.
"If you don't do that properly, you put yourself in a position where the club might want to change things."
Carrick becomes the second Manchester United manager to be sacked in two seasons, leaving the 20-time English champions searching for stability after another difficult period.
United States national team coach Mauricio Pochettino is the favourite to replace him, with reports claiming United have reached an agreement in principle with the Argentine.
The former Tottenham Hotspur, Paris Saint-Germain and Chelsea manager is reportedly ready to return to the Premier League, although his appointment has not yet been officially announced.
Despite the circumstances surrounding Carrick's exit, James believes the former midfielder should consider himself fortunate to have managed one of the biggest clubs in world football.
"I can think of probably 86 other teams he could be at and be in a worse position than he is at the moment," he continued.
"Even if it looks imminent that Pochettino is going to come in, Manchester United is one of the biggest clubs in the world, and there could be worse positions to be in.
"So, no, I don't feel sorry for him. I've been in football long enough. I've been a coach, and I've been in that position myself.
"It's tough, but that's football. It could have been tougher."
United are hoping to appoint a permanent successor as soon as possible, with the new manager facing a daunting first test against Liverpool at Anfield on November 22nd, before travelling to Lisbon three days later for a Champions League clash with Sporting.
