Nemanja Vidic has signed a two-year contract extension that will keep him at Manchester United until 2012.

The Serbia defender, who signed on Christmas Day 2005 from Spartak Moscow in a €10million deal, had a difficult start to his Old Trafford career but has gone on to be one of the most influential players at the club.

A major factor in last season's title success, Vidic has the happy knack of finding the net for his club, scoring the winner at Everton earlier this season, one of five goals in his 69 appearances.

The 26-year-old is so highly rated by Alex Ferguson, he even assumed the captain's armband following the substitution of Edwin van der Sar during last night's 4-0 Champions League win over Dynamo Kiev.

And while Spanish youngster Gerard Pique is developing into a first-team prospect for the future, Ferguson has been quick to extend Vidic's stay at the club.

"Nemanja has made a terrific impact at the club and has forged a partnership with Rio Ferdinand that was a major part in us winning the title last year," said Ferguson.

"He is an extremely popular member of the squad, both with staff and fans alike. It's great news that he wants to be part of this exciting side for years to come."

Now fully recovered from the knee injury that forced him to miss the World Cup last year, Vidic had no hesitation in signing the new deal.

"Playing in this team is a great privilege," he said. "This is such a great club and I am delighted to be able to extend my stay here.

"The fans and everyone at the club have been very special to me. I hope I can do my bit to bring the club even more trophies in the years ahead."