(AFP) - Michael Carrick has ended speculation over his future by signing a new one-year contract with Manchester United, the Premier League club announced on Thursday.

Carrick was due to be out of contract in the close-season and faced the possibility of having to leave Old Trafford when Jose Mourinho was appointed to replace sacked manager Louis van Gaal.

The 34-year-old was offered the chance to move to Australian outfit Perth Glory.

But Mourinho believes Carrick can play a significant role in his plans to revitalise United next season and agreed to rubber stamp a new deal that keeps him at the club until 2017.

"Michael is a very intelligent midfielder and a great reader of the game. I am pleased that he will be extending his contract," Mourinho said in a United statement.

"His form this year shows his ability and his enjoyment of the game are as strong as ever.

"Michael has a wealth of experience from his many years at the club and that knowledge will be invaluable to me. I am really looking forward to working with him."

England international Carrick joined United from Tottenham in July 2006 and has won five Premier League titles, as well as the Champions League, FA Cup and League Cup.

He has emerged as one of the more vocal voices in the United dressing room, reportedly joining with captain Wayne Rooney to inform van Gaal that many players were unhappy with his methods.

Carrick also defied criticism of his form this season to help the club beat Crystal Palace in the FA Cup final at Wembley last month.

"This great club has been a part of my life for the past 10 years so I am delighted that this incredible journey is continuing," Carrick said.

"It's great to have the opportunity to work under Jose Mourinho, who has achieved so much during his managerial career.

"I would like to thank the fans for their unwavering support. Winning the FA Cup was a special moment and hopefully we can go on to win more trophies in the future."