Erik ten Hag has signed a contract extension that keeps him at Old Trafford until 2026, the Premier League club announced on Thursday.
There had been intense speculation over the Dutchman's future after a poor 2023/24 Premier League campaign but he guided the club to FA Cup success against Manchester City.
It was widely leaked in the British media last month that after a review by the club's new part-owner, British billionaire Jim Ratcliffe, Ten Hag would be staying at the club.
"Erik ten Hag has extended his contract as Manchester United men's first-team manager until June 2026," United said in a statement.
The former Ajax manager, whose deal had been due to expire in 2025, admitted there was work to be done to close the gap on United's Premier League rivals.
"Looking back at the past two years, we can reflect with pride on two trophies and many examples of progression from where we were when I joined," he said.
"However, we must also be clear that there is still lots of hard work ahead to reach the levels expected of Manchester United, which means challenging for English and European titles."
Dan Ashworth, Manchester United sporting director, said: "With two trophies in the past two seasons, Erik has reinforced his record as one of the most consistently successful coaches in European football.
"While the club's review of last season highlighted areas for improvement, it also reached a clear conclusion that Erik was the best partner for us to work with in driving up standards and outcomes."
Ten Hag, 54, ended a six-year trophy drought for United in his first season by lifting the League Cup in 2023 and finished third in the league, encouraging fans that they might launch a Premier League title bid in 2023/24.
But they lost 14 games and ended with a negative goal difference, finishing a whopping 31 points behind champions Manchester City.