Manager Sir Alex Ferguson had already rewarded the veteran pairing of 35-year-old Paul Scholes and Ryan Giggs, 36, new 12-month contracts this season.
"We have agreed a contract with Gary Neville for another year and it is something we have been working on for a couple of weeks," Ferguson told reporters on Friday.
"We are delighted with that and we think he deserves it for his contribution at the club. He has been fantastic.
"You can keep a player with experience and not play him of course, but I don't think Gary would enjoy that. I don't think any of the three would enjoy that."
Scholes, Giggs and 35-year-old Neville will go down in United folklore with an astonishing 2,074 appearances between them. Club captain Neville has made 597 appearances for United since his debut in 1992.
It looked over for Neville in March 2007 when he suffered a serious ankle ligament injury and was out of action for almost 18 months but he has played 27 games this season and been mentioned as a potential member of England's World Cup squad.
"The amazing thing about Gary is that he has come back from a serious injury in his thirties," Ferguson said.
"To get to the level he is playing at today is astonishing. The man is doing it because of his determination and drive within himself not to give in.
"He is getting the rewards for that and his performance levels recently have been outstanding."
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