Fergie and Gill 'very happy' after contract-signing

Alex Ferguson has signed a one-year rolling contract with Manchester United to commence July 2005.

The news comes after intense speculation over the manager’s future in the light of his fall-out with major shareholder John Magnier.

Manchester United chief executive David Gill said: “We are very pleased that Sir Alex has signed a new contract with Manchester United.

“His fantastic record speaks for itself and his appetite for the game and his desire to build a new generation of world-class players at Old Trafford is undiminished.”

Gill added: "We came up with the idea for a one-year rolling contract when discussions first commenced in summer 2003, because we believe it reflects our total confidence in the manager and also reduces speculation about his possible retirement date.''

Ferguson said: “I’m very happy with the new contractual arrangements.

“It gives me strong focus on the short-term challenges in the new season ahead as well as the long-term freedom to look to improve our current squad and to win trophies both domestically and in Europe.”