Jones, 26, was due to become a free agent at the end of the season but the England international is now tied to United until at least June 2023, while the club have the option of a further one-year extension.
The centre-back has featured only 16 times in all competitions this season due to minor injuries and other options being preferred.
However, interim manager Ole Gunnar Solskjaer is convinced Jones is a United-standard player.
Solskjaer told United’s official website: “Phil knows what it takes to be a Manchester United player. He has won the Premier League, FA Cup and Europa League and is now one of the senior players within the team.
“He is coming up to his 27th birthday and entering into his prime years as a centre half. We are delighted Phil has committed his future to the club.”
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