The bombshell from Old Trafford comes after the latest breakdown in the relationship between Pogba and manager Jose Mourinho.
The duo have been clashing since the middle of last season when Pogba was dropped from the Manchester United team for the first time since his £90million arrival in 2016.
This season, Pogba has deputised as United captain with club skipper Antonio Valencia struggling with injury.
But on Saturday, Pogba was guilty of a mistake which cost United as they conceded a goal to Wolves.
Mourinho blasted his players post-match but Pogba hit back saying United needed to attack more in home games.
The United boss personally held Pogba responsible for the 1-1 draw at the weekend and slammed the midfielder in the dressing room.
And the Daily Star claims Mourinho has now informed the squad that the World Cup winner will never skipper the club again in an attempt to show his authority and remind the players that he is in charge.
A Carrington source revealed: “Jose told the players that Pogba will not be the captain because he doesn’t represent what a captain is and Manchester United is bigger than anyone.
“The players were happy with that decision and the reasons behind the manager’s decision.”
And it is now a distinct possibility he could be sold in the January transfer window.
Former club Juventus and Barcelona would almost certainly be interested in Pogba if he was made available by United.
Pogba excelled at the World Cup with France and his manager Didier Deschamps defended him, insisting he was just misunderstood.
He said: “I think the rest of the world, and certainly in France, has an image of Paul Pogba that doesn’t really reflect who he is.
“He’s been in the national team since 2013 and he’s always thought about the collective.
“There’s this idea that he’s a bit individualistic and only thinks about himself but that’s not the case at all. I think that’s one thing that needs to be said.
“Another is that he arrived at the World Cup really prepared and he took on the mantle of leadership, on and off the pitch. He became a bit of a spokesman for the team and he can do that because he’s a good speaker.
“I’ve spoken to him about his relationship with the media and I think he’s been unfairly criticised in the past. That’s why there has been this aggressive vibe and he’s had this strained relationship.
“But criticism is part of the job and I think you learn to take that on board as you get more experienced.
“That’s what’s happened with him and I think he’s gained some respect. He joined us ready to become a world champion and he took the whole squad with him.”
United face Derby in the League Cup this evening and Pogba is not expected to feature.