The left-back has been vocal in his uncertainty over his future but, the new manager Louis van Gaal was keen to retain the Frenchman's services.
The 33-year-old triggered a unilateral option to extend a contract worth over £6 million annually into a fourth season with his appearance record under the Dutchman's sacked predecessor, David Moyes.
Evra was a target for Serie A champions Juventus - with a two-year deal on offer - but has now opted to remain at Old Trafford.
Despite being keen to keep Evra at the club, manager Van Gaal has also approved United's attempt to sign Luke Shaw from Southampton and it is his intention to split left-back duties between the young England international and veteran Evra.
The former Monaco defender joined Manchester United in 2006 and has enjoyed a highly successful spell in England, winning five Premier League titles and the Champions League.
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