United boss Sir Alex Ferguson revealed earlier this month that Scholes was set to play on for another season after coming out of retirement in January and the Premier League runners-up have now completed the formalities of the deal.
After returning from retirement to aid United's underperforming midfield, Scholes produced enough influential displays to convince Ferguson that the 37-year-old could still play a part next season.
United have also given a three-year contract to reserve goalkeeper Ben Amos, who made his Premier League debut against Stoke in January.
Amos, who has made seven career appearances for United and had loan spells at Oldham, Peterborough and Norwegian club Molde, hopes to compete with Spaniard David de Gea for the right to be Ferguson's first-choice 'keeper.
"Ben Amos and Paul Scholes have both signed new contracts to remain with Manchester United," a statement on the club's website confirmed on Wednesday.
"Promising young goalkeeper Amos has penned a three-year deal which will run until at least 2015, while Scholes has signed until the end of the 2012/13 season.
"Scholes has completed the formalities of the one-year extension which Sir Alex Ferguson confirmed earlier this month."
Ferguson believes this will be Scholes' final season with United as the England international looks to add to the 19 major medals he has won during nearly 20 years at Old Trafford.
"I am delighted," Ferguson said when he announced the news at the club's player of the year awards dinner.
"He knew he had made a mistake (by retiring). He now realises if he plays 25 or 30 games next season, they will be of real quality.
"I think this will be Paul's last season. We know him very well. We have had him since he was a kid. We know how to use him."
Source: AFP
Source: AFP