The Daily Mail reports that the new deal will see the 21-year-old striker earn £75,000-a-week at Old Trafford.
The youngster made 30 appearances and scored nine goals for United in the Premier League last season.
Welbeck also featured for England at Euro 2012 this summer.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.