The Uruguayan striker, 34, signed until the summer of 2022 after turning down an offer from Boca Juniors in order to spend one more season in elite European football.
Transfer expert Fabrizio Romano confirmed the new deal on Twitter, writing: “Edinson Cavani has signed his contract extension with Manchester United, here we go!
“The agreement has been completed, Cavani has accepted to stay after Man Utd board and Solskjaer were pushing to keep him.
“Confirmed and done deal.”
This comes after manager Ole Gunnar Solskjaer and fans’ pleaded with him to stay at Old Trafford for another year after his impressive performances for the club.
Manchester United is expected to announce the new deal for the striker ahead of their match with Leicester City on Tuesday evening.
Earlier in the campaign, Solskjaer told fans the club was in talks with Cavani, outlining: ‘we’re speaking to Eddy.
‘Edinson is a top striker and whatever he decides to do, let’s see. We’re in good dialogue with him.’
The United boss told reporters: ‘Edinson is not 100% decided on his future yet.
‘He’s not told me he wants to leave but I am very aware he might be going back home to South America. If that’s his decision, I will understand that.’
Cavani joined Manchester United on a free transfer from French giants Paris Saint-Germain in October 2020, reportedly taking a 35 percent pay cut to move to Old Trafford but netting a signing-on fee in the region of £6million.