The Ivorian centre-back has officially agreed fresh terms on a deal lasting until 2024 that includes the option for a further 12 months.
Bailly’s previous contract had been due to expire at the end of next season.
“I’m very happy,” Bailly told United’s official website. “This decision is something I didn’t have to think about, I love this club and I love playing for Manchester United.
“I’m happy and so are my family, everything is good. Now the moment with my injury has passed and I’m fit and feel good, and that’s it. A new contract is like a new challenge and I’m ready for this.”
Bailly joined United from LaLiga outfit Villarreal in a £30million deal in June 2016 and has gone on to make 100 appearances for the club across all competitions.
However, the 27-year-old has been plagued by injury issues over recent seasons and has featured in only eight of United’s 33 Premier League matches so far this term.
He returned to the matchday squad as an unused substitute for Sunday’s goalless draw against rivals Leeds at Elland Road after contracting Covid-19 while away on international duty with the Ivory Coast.
It was his injury history that had caused no shortage of uncertainty regarding Bailly’s United future, though manager Ole Gunnar Solskjaer believes he still has a key role to play moving forward.
“I am pleased that Eric has signed this new contract. He is still learning and improving all of the time under the coaches here,” the Norwegian said.
“Eric has improved his robustness since my time as manager and he will continue to play a significant part in the squad.
“He possesses fantastic speed, timing of tackle and has that aggression which, of course, you need as a centre-back. He is a popular member of the squad and we look forward to continuing to work with him going forward.”