The Dutchman’s previous deal when he was appointed in 2022 was due to expire in 2025.
Ten Hag, who moved from Ajax to Man United, won two trophies in two years at Old Trafford.
“I am delighted to have reached an agreement with the club to continue working together,” said the 54-year-old coach.
“Looking back over the past two years, we can proudly reflect on two titles and many examples of progress since I arrived.”
“We must also be clear that there is still a lot of hard work ahead,” Ten Hag stressed.
Man United finished third in the Premier League in Ten Hag’s first season at Old Trafford, and he also helped the “Red Devils” end a six-year wait for silverware with victory over Newcastle in the Carabao Cup final.
But the Dutchman’s second season was much more difficult, as United finished eighth in the Premier League and were eliminated from the Champions League group stage.
That left his position in serious doubt, with the risk of his contract being terminated early, even if he won the FA Cup.
However, a 2-1 win over Manchester City in the FA Cup final in May changed things, with Ten Hag retaining his job and it was confirmed on 4 July.
Man United, led by co-owner Sir Jim Ratcliffe following his investment last December, conducted a review of the team’s performance throughout the season following the Wembley win.
The review found that club leaders spoke to potential replacements for Ten Hag, but ultimately decided he deserved to keep his job to work under a new, improved structure.
Ratcliffe has overhauled the club’s board structure since taking a 27.7% stake in the club.
Jason Wilcox, Omar Berrada, Sir Dave Brailsford and Dan Ashworth all appear in senior positions on the board.
“This group of players and coaching staff have shown they are capable of competing and winning at the highest level; now we need to do that more consistently,” said sporting director Ashworth.
With the football leadership team now strengthened, we look forward to working closely with Erik to achieve our shared ambitions for the football club.”
Man United are in talks with Ten Hag to restructure his coaching staff.
Former striker Ruud van Nistelrooy , who has been PSV Eindhoven manager since the 2022-23 season, is expected to return to Old Trafford as part of a revamped coaching structure alongside Go Ahead Eagles coach Rene Hake.
Former Chelsea technical director Christopher Vivell has also joined United as global talent scout on a short-term deal to assist in the current transfer window, with the possibility of a permanent stay not ruled out.