Scholes said: “It’s great to sign a new deal, last season was fantastic but you always want to achieve more and with this team we are capable of doing just that.”
Scholes is currently out with a knee injury he suffered in the 3-0 victory over Aalborg in the Champions League on Tuesday.
United boss Sir Alex Ferguson said: “Paul is proof that if you look after yourself you can carry on playing and be rewarded at a club of this size.
“He’s 34 years old and he’s been here since he was 14 and that tells you the desire and the ability he has to stay at the top.”