The new deal will keep Evra at United until the summer of 2014.
“Ever since I arrived at United, it’s been a dream come true playing here,” Evra told the club’s official website.
“The fans, the players, the manager and the staff all work hard to make this club the best in the world.
“I’ve won a lot in the last five years, but I want to win more and I know that’s the mentality of everyone here.”
Evra has recently been strongly linked with a summer move to Real Madrid.
United boss Sir Alex Ferguson said: “Patrice has developed into a key character in the dressing room.
“It’s great that he’s committed himself to Manchester United. His experience and talent will be increasingly important to us.”