Waters Reach, which runs adjacent to United's stadium, was renamed Sir Alex Ferguson Way by Trafford Borough Council.
The tribute further acknowledged the contribution Ferguson made to the area on a day in which he was also awarded the Honorary Freedom of the Borough of Trafford.
A ceremony was also to take place at Trafford Town Hall for the 71-year-old, who retired earlier this year after 26 years at the United helm.
Govan-born Ferguson, who won 13 Premier League titles and two Champions League titles with United, said: "I am delighted to accept this from Trafford Council.
"When I arrived at Old Trafford in 1986 I had little idea of the journey that awaited me. Over quarter of a century later, to receive the Freedom of the Borough of Trafford, and have a part of Trafford carrying my name, is truly humbling."
Sir Alex Ferguson Way is close to another road, Sir Matt Busby Way, named after one of Ferguson's illustrious United predecessors, who was born in Bellshill, Lanarkshire.