The new deal will keep the 18-year-old at Old Trafford until at least June 2020 with an option to extend for a further year.
Rashford told United’s official website: “I am delighted to have signed a new contract.
“I have always been a Manchester United fan, so to be playing in the first team really is a dream come true.
“I am grateful for having the chance to prove myself. To be able to play football at the biggest club in the world means everything to me and my family.”
Rashford was handed a first-team debut for the Europa League clash with Midtjylland.
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?