Media speculation suggested the the 35-year-old might retire by the end of the season, but United's official website confirmed today that the player is staying till 2010.
Giggs, who scored his 97th Premiership goal for the club in the 1-0 win over West Ham on Sunday, confirmed that he's more than happy with life at Old Trafford.
"Things couldn't be better. I'm playing with a very talented group of players and the spirit in the dressing room has never been so good," said Giggs.
"It's my intention to carry on playing for the club beyond this season," added the former Wales skipper.
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Since breaking through United's youth ranks and playing his first game for the club in 1990, Giggs has been an integral part of Sir Alex Ferguson's team.
He surpassed Sir Booby Charlton's record of 758 appearances for the club and holds the record of 23 team trophies won by a player.
Giggs also holds the record for most assists in the Premiership with 289 assists in 535 league games.
Prior to retiring from international football, he played 64 times and scored 12 goals for Wales.