The ageing playmaker came out of retirement in January and impressed with solid performances, defying the critics who stated that he was told old.
However, Sir Alex Ferguson has confirmed that Scholes will stay on for another season, which may well be his last.
“It has been done. He is staying,” Ferguson told MUTV.
“I am delighted. He knew he had made a mistake. He now realises if he plays 25 or 30 games next season, they will be of real quality.
“I think this will be Paul’s last season. We know him very well. We have had him since he was a kid. We know how to use him,” the Scot concluded.
United are thought to be in the market for a new attacking midfielder who can take over from Scholes in the long run.
By Gareth McKnight