The midfielder retired last year but returned in January to help fuel the Reds' title bid, playing a key role in the team accruing 89 points and only missing out on the championship on goal difference.
At 37, he still showed a thirst for finding the back of the net - scoring four times, against Bolton, Norwich, QPR and Swansea and all worries that he may call it quits again have been ended by the manager.
"It's been done," he told MUTV in an exclusive interview during the Player of the Year award ceremony. "I’ve spoken to him and he’s staying. I’m delighted. He knew he’d made a mistake.
"He now realises that if he plays 25 or 30 games next season, they’ll be of real quality. We know our player very well. We’ve had him since he was a kid and we know how to use him.”
United legend Bryan Robson, who knows all about dominating the midfield, endorsed the move during another exclusive MUTV interview.
"Why would you not stay?" he asked. "Since Scholesy’s come back, he’s been terrific. To run games in the Premier League like he has since he’s come back, has been great.
"He’s got such a great footballing brain, his passing range is so great. I’m just delighted that Scholesy is staying.
"He retired at the end of last season because he said he had aches and pains in his body and he didn’t feel he was up to it. So it was nice that he had the rest, he’s come back and he feels like he’s up to it again. It’s great news for United.”