The deal is believed to be for £300k per week for five and a half years - an eye-watering sum of money, for which the merits will likely be heavily debated.
Rooney said: "I am made up to be staying and grateful to all United fans around the world."
Interestingly, United have also stated that Rooney will become a "club ambassador" when he retires from the game. Whether that's a hint that he's hoping to hang up his boots while still playing for us, we can't be sure, although it's intriguing that they've thrust the olive branch out quite so vigorously on this one.
Rooney will of course be favourite to receive the captain's armband when it's vacated by Nemanja Vidic in the summer - well, we might as well get used to the idea now. Maybe he didn't hand in that second transfer request after all. I'm sure Ferguson wouldn't lie to us...