United made the announcement on Friday via their official website.
Valencia said: "Manchester United has been my life since 2009, and I am absolutely delighted to have signed a new contract."
Should the Ecuador international see out his new deal he will celebrate a decade at the club.
Red Devils boss Jose Mourinho added: "It is no secret that I had been an admirer of Antonio's long before I joined the club. I knew what a fantastic player he was, and he has not disappointed me on that front."
ESPN's Alex Shaw hailed the decision to hand the former Wigan Athletic man an extension:
Football writer Liam Canning hailed his performances this year and believed he was a strong choice to lead out the team in their UEFA Europa League final on Wednesday:
Reliable at the back but capable of making marauding runs forward, the hardworking winger has successfully transitioned into an excellent full-back during his time at Old Trafford, and despite turning 32 in August, he has continued to produce consistently strong performances.
United will soon need to find a long-term replacement for him, but locking him down for the next couple of seasons while they work on that is a shrewd move.
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