The Norwegian boss is now tied to the Old Trafford club until 2024, with the option of a further year.
Solskjaer, a player at the club from 1996 to 2007 under Sir Alex Ferguson, has been in charge since 2018 and last season oversaw a run to the Europa League final and a second-place finish in the Premier League.
While he has yet to win silverware since taking the helm, the club remains impressed with his work in rebuilding the team and taking them to multiple semi-finals.
“Everyone knows the feeling I have for this club, and I am delighted to have signed this new contract. It is an exciting time for Manchester United, we have built a squad with a good balance of youth and experienced players that are hungry for success,” Solskjaer told the club website after signing his deal.
“I have a fantastic coaching team around me, and we are all ready to take that next step on our journey. Manchester United wants to be winning the biggest and best trophies and that’s what we are all striving for. We have improved, both on and off the pitch, and that will continue over the coming seasons.
“I can’t wait to get out in front of a packed Old Trafford and get this campaign started.”
Ed Woodward, Executive Vice-Chairman, added: “Ole and his staff have worked tirelessly putting the foundations in place for long-term success on the pitch. The results of that have become increasingly visible over the past two seasons and we are all looking forward to seeing this exciting team develop further in the years ahead.
“What is especially pleasing is the way this progress has been achieved with a blend of young, homegrown talent and top-class recruits, playing attacking football in the best traditions of Manchester United. We are more confident than ever that, under Ole’s leadership, we are heading in the right direction.”
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