Jaap Stam has agreed a one-year extension to his current deal.
He becomes the latest Manchester United player to be rewarded with a new contract.
Stam's new agreement until 2006 is expected to double his salary at Old Trafford.
The Dutchman's agent Ton van Dalen said: "Jaap is very happy with the contract.
"He's very happy at Manchester United and he had never wanted to leave."
The centre-half has been in outstanding form following his return from an Achilles operation.
And he joins Andy Cole in signing a new contract.
Cole put pen to paper on a new four-year deal at the start of the month, which also doubled his salary.
United will now turn their attentions to the next three players on their list - David Beckham, Gary Neville and Ryan Giggs.
Preliminary talks have already started with Giggs, although the Welshman does not expect everything to be agreed before the end of the season.