The deal means 38-year-old former Wales midielder Giggs, who has only ever played professionally for United, is set to take part in a 22nd season for the Old Trafford club, having made his debut as a teenager in 1991.
Since then Giggs has mas made a club record 898 appearances, scoring 162 goals and won 12 Premier League titles, two Champions Leagues, four FA Cups and three League Cups.
"Ryan is a marvellous player," said United manager Sir Alex Ferguson. "In many ways, he epitomises all my teams here at United; he has constantly re-invented himself, adapted to the changing nature of the game and retained that desire and hunger for success.
"In every training session and match, he is the example for others to follow.
"The young players in the dressing room have a great chance to learn from a player who will continue to break records that anyone in the game will find hard to beat."
Giggs added: "When I signed my first contract, I never thought I'd be able to play at United for 22 years but I feel good and I know I can still contribute to keeping the team pushing for honours.
"Winning the Club's 19th (English record) title (last season) was a great feeling but this club is all about what we do next and I'm really pleased I can be part of that."
Source: AFP
Source: AFP