The Dutchman was on the brink after his side lost 2-0 at Stoke on Boxing Day, but he was backed by the club.
However, things appear to have changed after United struggled to a 1-0 FA Cup win over League One outfit Sheffield United.
And the Daily Star report United's owner the Glazer family have performed a dramatic U-turn and could now axe the Dutchman.
It is claimed Van Gaal could lose his job if United suffer back-to-back defeats on trips to Newcastle and Liverpool this week.
United have been linked with a host of managers as potential replacements for Van Gaal, most recently Tottenham boss Mauricio Pochettino.
A deal is unlikely to be brokered with Spurs chief Daniel Levy mid-season, but there is the possibility of Ryan Giggs taking over until the end of the season.
Van Gaal admitted things were at a low after needing an injury-time penalty from Wayne Rooney to beat Sheffield United.
"It is not only frustrating for the fans," he said. "The players and staff are frustrated as well."
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