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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Chelsea have struggled to build momentum in the opening stages of the campaign and are currently looking over their shoulders at the relegation zone.
Who of Europe’s top strikers will move to England this summer?