15/05/2012 04:57 BST

Manchester United Manager Sir Alex Ferguson Confirms Paul Scholes Will Play One More Season

Sir Alex Ferguson expects next season to be Paul Scholes's last at Manchester United.

The Red Devils chief confirmed on Monday night that Scholes had agreed a new one-year contract with the Old Trafford outfit. It cements a comeback started in January when the 37-year-old abandoned the retirement he had announced 12 months ago.

However, while Ferguson does not believe it is automatic Scholes will end his career next summer, he does feel the midfielder will only go on for one more year. "I think this will be Paul's last season," Ferguson told MUTV.

"We know him very well. We have had him since he was a kid and we know how to use him.

"But it has been done. He is staying and I am delighted."

Scholes has been mentioned as a potential candidate for the Euro 2012 squad England manager Roy Hodgson will unveil on Wednesday.

The introduction of Gary Neville on to Hodgson's coaching team may make that transition process smoother, although, for now, Ferguson's only concern is what Scholes can do for United.

"He knew he had made a mistake," said the Scot over Scholes's initial decision to retire.

"He now realises if he plays 25 or 30 games next season, they will be of real quality."