The announcement caps a remarkable turn of events after the Spain international was on the verge of signing for the Spanish giants only for the transfer to collapse because of paperwork arriving past the permitted deadline.
United announced on their official Twitter account: "David de Gea has signed a new four-year contract at #mufc with an option to extend for a further year."
De Gea, 24, said: "I am delighted to be starting this new chapter in my United career.
"I have always enjoyed playing with these great players in front of our fantastic fans. Manchester United is a special club and Old Trafford is an ideal place for me to continue to develop my career.
"I'm looking forward to putting a difficult summer behind me and concentrating on working hard to improve and help my teammates to be successful."
The news of an extension was understandably well received by United manager Louis van Gaal, who said: "I am absolutely delighted David has signed a new contract.
"He is one of the best goalkeepers in world football. I am very pleased that he will be part of the team for many years to come.
"David made a very important contribution to our performance last season and he has been the club's Player of the Year for the last two seasons."
That De Gea has committed his future to United is all the more remarkable given the events of the past few months.
The Spaniard, long courted by Real, was on the brink of a move to Madrid worth between 30 and 40 million euros and involving Costa Rica goalkeeper Keylor Navas in part-exchange.
But the deal collapsed at the last minute, with a Spanish Professional League (LFP) spokesperson telling AFP that De Gea had not been registered as a Madrid player.
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