The new deal will keep the 35-year-old at Old Trafford until at least the summer of 2011.
“We are delighted Paul is staying on for another year,” United boss Sir Alex Ferguson told the club’s official website.
“His form this year indicates his ability and his enjoyment of the game are as strong as ever, that’s every reason to stay on.
“There was talk about him wanting to retire, but when you see his enjoyment in training and playing you can see how much he wants to carry on.”
