Giggs's original contract had been due to expire this coming summer but his performance's this season have more than warranted United boss Sir Alex Ferguson offering him a new deal.
"Ryan is a true professional of the game," Fergie told the club's official website.
"His lifestyle, the way he looks after himself, his desire to always want to win is a credit to him and also an inspiration to any young kid who wants to become a footballer.
"He is like a young boy in the way that he plays and, although he wants to play every game, he understands that by using his experience when it matters is a benefit to him and the team.
"It would be easy for him to be complacent after all he has achieved but he isn't and that speaks volumes of why the club wanted to extend his services and use that experience."