The 37-year-old has won an incredible 11 Premier League titles with untied since making his debut for the club against Everton at Old Trafford in March 1991.
“All I’ve ever wanted to do is play for United and I’ve been lucky enough to do that for 20 years,” he told the club’s official website.
“It is great to know I’m still contributing to the team’s success and I feel I’ve got a lot to offer on and off the pitch.
“This is an exciting time to be involved with so many good young players coming through.”
“You run out of words to describe Ryan Giggs,” explained United boss Sir Alex Ferguson. “He is a marvellous player and a wonderful man.
“To have the desire and the ability to play at the top level in such a physically demanding position at his age requires a special person.
“He is still turning in man of the match performances and his experience is so vital for the younger players in the squad.”