Scholes retired last summer, but was lured back in January and played a key part in Manchester United's revival which ended in them being pipped to the Premier League title.
The midfielder did not look out of place and United boss Sir Alex Ferguson has confirmed Scholes will be in hi plans next term.
Speaking at Monday evening's Manchester United Player of the Year dinner, Ferguson told MUTV: "It has been done. He is staying.
"I am delighted. He knew he had made a mistake. He now realises if he plays 25 or 30 games next season, they will be of real quality.
"I think this will be Paul's last season. We know him very well. We have had him since he was a kid. We know how to use him."
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