Rooney has put pen to paper on the £300,000-a-week deal that will see the striker see out the prime years of his playing career at United.
The deal represents a major coup for United boss David Moyes and executive vice-chairman Ed Woodward, who refused to sell Rooney to Chelsea last summer.
Rooney had become disillusioned with life at United and was ready to leave for a new challenge after the breakdown of his relationship with Sir Alex Ferguson.
But Moyes told Rooney the striker remained central to his plans at United and has helped the 28-year-old forward rediscover his best form this season.
Rooney told United's official website: "I'm made up to be staying at United. In August I will have been at the club for 10 years and during that time I have played with some fantastic players and won everything that I hoped I would when I first signed. I now have the chance as one of the club's senior players to help the younger players coming through and to be a part of another great United team.
"The fans have always been a huge part of this club and the support they have given me since my debut against Fenerbahce has been amazing. I am very grateful to all United fans around the world for their continued support.
"I am really excited to be a part of the club's future and want to thank David Moyes and Ed Woodward for their belief and support in me. I am convinced that this is the start of another successful chapter in Manchester United's history."
Rooney continued: "I’m very happy to have signed a new long-term contract with Manchester United. This is one of the biggest clubs in the world and to know that I will be playing here for the majority of my career is something that I’m looking forward to. I’m happy that everything is now finalised and I can carry on concentrating on my football
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