Sir Alex Ferguson has expressed his delight at signing a new contract as manager of Manchester United after weeks of speculation surrounding the delay in the new deal.

The 62-year-old has sealed a 12-month rolling extension to his current contract, which was due to expire in 2005, similar to the one Sir Bobby Robson has at Newcastle.

While much has been made of alleged attempts by major shareholders John Magnier and J.P. McManus to block the originally proposed fixed-term deal, all parties - including Ferguson himself - are said to have realised the one-year option was the best way forward.

Both the United board and the manager were keen there would be no repeat of the situation which existed during the barren 2001-02 campaign, which was destined at the time to be the Sir Alex's last.

The United boss believed his team's performances were adversely affected by the prospect of his impending departure and the speculation surrounding his successor.

Having since claimed his decision to carry on two years ago was the 'best of his life' Ferguson has now vowed to continue the unprecedented success he has brought the club since arriving in November 1986.

"I'm very happy with the new contractual arrangements," he said. "It gives me a 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.

"I believe we have a very strong squad with a nucleus of young and talented players as well as excellent prospects in our own Academy and that will give us an excellent foundation for success over future years."

Ferguson also used today's announcement to express his gratitude for the backing of the current Old Trafford hierarchy, especially chief executive David Gill.

"The Board, and in particular, David Gill have demonstrated their confidence in me and support for my decision-making at every level," said Ferguson.

"I am enjoying the job more than ever before and I hope I can reward that confidence on the pitch."

While things may not be quite so straightforward off the pitch, with internal investigations into the club's transfer dealings to be undertaken, it was stressed earlier this week that the manager plays no part in any financial or contractual negotiations with any player he signs.

David Gill and chairman Sir Roy Gardner have also tried desperately to maintain the middle ground between Ferguson and Magnier but the chief executive stressed that the manager has the support of everyone at the club.

"Sir Alex's fantastic record with Manchester United 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," said Gill. "He has the Board's 100% support.

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

"Sir Alex considers this arrangement to offer distinct advantages over a long and fixed-term contract in that he feels it will keep him even more motivated every season and hungry for more success over the future years."

Sir Alex Ferguson is the longest serving manager in the Premiership and the second longest serving in English football, with only Crewe boss Dario Gradi – in charge at Gresty Road since June 1983 – having been in his current post for longer.

He is also the most successful manager in the British game and LMA vice chairman Frank Clark, who came up against Ferguson during his own spells in charge at Nottingham Forest and Manchester City, believes there is plenty more to come from the determined Scot.

"We all used to think that 65 was the limit but Bobby (Robson) has blown that apart. As long as they retain enthusiasm for the job they can go on as long as they want," Clark said.

"He (Ferguson) is one of the greatest, there's no doubt about that. I'm sure he can go from strength to strength."

The United boss has always been a strong supported of the LMA and will often give his support and advice to his fellow professionals.

Clark revealed: "He's been an incredibly active member of the LMA since its formation. He's done lots of good things for young managers. He's usually the first on the phone if a manager is struggling."

Sir Alex Ferguson CBE