Retirement seems to be a long forgotten idea for Paul Scholes, who has signed a one-year contract with Manchester United that will keep the midfielder with the club through the 2012-2013 season.

Terms of the deal were agreed upon earlier in the month and became official on Wednesday.

Scholes retired before last season only to return in January after being persuaded by manager Sir Alex Ferguson. "He now realizes that if he plays 25 or 30 games next season, they'll be of real quality," Ferguson said. "We know our player very well. We've had him since he was a kid and we know how to use him."

After coming out of retirement, Scholes, 37, played a crucial role for the team as a stabilizing midfielder. He played in 16 matches for Man U in English Premier League play and scored four goals. Manchester United narrowly missed the Premier League Title this season. Manchester City surpassed them with a stunning comeback against Queens Park Rangers in the final match of the season.

Manchester United also announced the signing of goalkeeper Ben Amos to a three-year contract extension. In four years, Amos has made seven appearances with the first team. He has spent loans at Molde, Peterborough and Oldham.

In other news, Manchester United is also reportedly close to signing Japanese midfielder Shinji Kagawa. Kagawa currently plays with Borussia Dortmund, the Bundesliga champions. The clubs have agreed to a transfer fee worth 15 million euros, which could rise to 22 million euros with add-ons.