Giggs aims to play on for at least another year
Giggs, who made his United debut in March 1991 and has now played a club record 897 matches in all competitions, said he intends to sit down to discuss a new deal shortly.
His decision has been welcomed by manager Sir Alex Ferguson who told the club's Inside United magazine: "There has been no discernable deterioration in his play whatsoever and, in that sense, why shouldn't he stay on another year?"
The former Wales international was asked if his intention was to continue playing after this season ended in May, and he replied: "Yeah, it is at the moment.
"We'll sit down pretty soon and see what we want to do but, at the moment, I feel good and I want to carry on."
The prospect of playing into his forties could not be discounted either.
"Now that one's a question! You can't see it but we'll see. When that changes [having a big influence on the pitch], then that's when I'll want to stop. But I feel like I'm still an influence on and off the pitch so I'll carry on."
Ferguson confirmed that another new deal was being prepared.
"We certainly hope so, yes," he replied when asked if Giggs can carry on for another year.
"Obviously, it's entirely up to Ryan himself but I don't see any reason why he can't continue."
Paul Scholes, 37, is back in the United side after telling Ferguson that he made a mistake by retiring "too early" at the end of last season and the two veterans have both played in all of United's last four matches.
Giggs has a glittering haul of honours from his 21-year playing career and is the most decorated footballer of all time in the English game. Among his 32 honours are 12 Premier League titles, four FA Cups and two Champions League winners medals.
He is also the only player to score in every season since the Premier League replaced the old first division in 1992.