The 2009 BBC Sports Personality of the Year is pleased with the deal that will take him through the milestone of 20 years in the first team.
Giggs said: “I am delighted that I have agreed one more year,” said the winger.
“I am enjoying my football more than ever and I am looking forward to hopefully winning more trophies with United.”
“Ryan deserves a new contract and I am sure that he will play for another two years,” said manager Sir Alex Ferguson.
“His form is fantastic at the moment and he is playing some of his best football.”