Dan Ashworth, Manchester United sporting director, said: “With two trophies in the past two seasons, Erik has reinforced his record as one of the most consistently successful coaches in European football.
"While the club’s review of last season highlighted areas for improvement, it also reached a clear conclusion that Erik was the best partner for us to work with in driving up standards and outcomes.
"This group of players and staff have already shown they are capable of competing and winning at the top level; now we need to do it more consistently.
"With our strengthened football leadership team now in place, we are looking forward to working hand-in-hand with Erik to achieve our shared ambitions for this football club.”