Phelan, a former assistant manager at Old Trafford, recently claimed that last night's sale of Manchester-born Danny Welbeck to Arsenal and the subsequent arrival of Radamel Falcao had "broken" United's tradition of giving academy players the chance to prove their worth.
When asked for his opinion on those deals by the Manchester Evening News, Harrison, who is credited for having nurtured the likes of Paul Scholes, Ryan Giggs, Nicky Butt, David Beckham and the Neville brothers, admitted that he is "very concerned" about the direction that the club has seemingly taken.
"I am very concerned to be honest. I cannot believe Danny Welbeck has gone. Okay he might not have been a prolific goalscorer but his work rate and effort was undeniable," he said. "There was a place for him and I am not too pleased he's gone to Arsenal. It is sending out the wrong message when local home grown players like that are leaving.
"Losing players who have been part of the club since they were young kids means you are losing the heart and soul of the club. That's what the 'Class of 92' were for instance. They were the core and you need that at the centre of your squad. You need players who have been brought up in the United family and atmosphere. It is special."
Welbeck scored 29 goals during his 142 appearances for the Red Devils.