Alex Ferguson moved quickly to sign up the former England striker for another year at Old Trafford, Owen has expressed his desire to remain at United and the 31-year-old played a bit part in United season mainly being used as a substitute.
"I'm delighted to have agreed a one-year extension to my contract," Owen told the club's official website.
"To play alongside so many great players, under an exceptional manager, and in front of so many incredibly passionate supporters, is a real inspiration.
"I can't wait for next season to start."
Sir Alex Ferguson was keen to secure the service of the former Liverpool man at Old Trafford for another 12 months.
Sir Alex added; "Michael has proved to be a top footballer. It's unfortunate Michael didn't get more opportunities but the form of Chicharito put everyone in the shade and his partnership with Rooney proved invaluable.
"I am delighted Michael is staying for a further year and we will look to give him more opportunities in the new season."
Could this news spell the end of Dimitar Berbatov's United career?
