Only days after announcing he was prepared to leave the club he joined in 2004 because of its lack of ambition in the transfer market, the England striker said he was persuaded to stay following talks with manager Alex Ferguson and the club's American owners, the Glazer family.
"I'm signing a new deal in the absolute belief that the management, coaching staff, board and owners are totally committed to making sure United maintains its proud winning history, which is the reason I joined the club in the first place," Rooney said in a statement.
Rooney's contract extension ties him to United until June 2015. Press Association Sport reported his new salary will be in the region of £150,000 a week, a rise of £60,000 pounds a week on his previous wage, making him the highest-paid player in the club's history and among the dozen elite earners in the Premier League.
One of the most turbulent weeks in United's recent history began when a "shocked" and "bemused" Ferguson revealed at a news conference Tuesday that Rooney, the team's talismanic figure and most marketable asset since the departure of Cristiano Ronaldo to Real Madrid last year, wanted to leave United.
Rooney responded Wednesday by releasing a statement, detailing his concerns with United's squad strength and claiming he had not been given any assurances by chief executive David Gill about the club's future.
But after a series of talks over Thursday and Friday involving Rooney, his representative Paul Stretford and the club's hierarchy, the striker went back on his decision. Ferguson, Rooney stressed, was key to his change of heart.
"In the last couple of days, I've talked to the manager and the owners and they've convinced me this is where I belong," Rooney added. "I said ... the manager's a genius and it's his belief and support that have convinced me to stay.
"I felt I had to get my point across and we finally came to an agreement."
Ferguson signed Rooney six years ago for £26.5 million pounds and has seen the player establish himself as one of the world's leading strikers. Rooney helped the club to Premier League titles in 2007, '08 and '09, and was a member of the side that won the Champions League in 2008. He was named England's Footballer of the Year last season after scoring 34 goals in all competitions.
"I said to the boy that the door is always open and I'm delighted Wayne has agreed to stay," Ferguson said. "Sometimes, when you're in a club, it can be hard to realise just how big it is and it takes something like the events of the last few days to make you understand.
"I think Wayne now understands what a great club Manchester United is. This is a big day for Manchester United."
Gill believes keeping hold of Rooney is a "real statement of intent."
"We've made sure we've retained one of the best players in world football," he said.
Ferguson said he and Rooney's teammates had received an apology from the striker.
"We have all been hurt by events of the last couple of days," Ferguson said. "Now we just want to move on."
Rooney's reportedly strained relationship with Ferguson has been heavily scrutinised this season.
The player attracted negative headlines at the beginning of last month when he was the subject of newspaper allegations that he had repeatedly cheated on his then-pregnant wife with a prostitute.
Ferguson benched Rooney for the next game against Everton, the club who sold him to United, to shield him from fan abuse but he has had limited playing time since, his form dipping to such an extent that he has only scored once for his club this season - from the penalty spot against West Ham.
Ferguson said an ankle injury has forced Rooney to miss several games, comments the striker publicly contradicted last week after playing in England's European Championship qualifier against Montenegro. Ironically, Rooney has now been ruled out for three weeks with an ankle injury sustained in training on Tuesday.
Rooney said he plans to get back in United supporters' favor when he returns to full fitness.
"I'm sure the fans over the last week have felt let down by what they've read and seen. But my position was from concern over the future," Rooney said. "It's up to me through my performances to win them over again."
