Scholes originally retired two years ago but was tempted out of it by manager Sir Alex Ferguson, who is retiring himself this summer.
“I am finally hanging up my boots for good,” said Scholes.
“Playing football is all I have ever wanted to do, and to have had such a long and successful career at Manchester United, under the greatest manager of all time, has been an honour.”
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.