Wayne Rooney has signed a lucrative contract extension with Manchester United that will keep him at Old Trafford until 2012.

The Red Devils have confirmed the news on the eve of their crunch Premiership showdown with Chelsea.

Although the 21-year-old's previous deal was not due to expire until 2010, United have been quick to recognise the enormous contribution Rooney has made since he joined from Everton for £27million two years ago.

As the finest young English talent to emerge in decades, Rooney is vital to United's chances of remaining at the forefront of the game, both at home and abroad and the new contract will catapult him among United's top earners.

While he may not have scored a European goal since his sensational debut-day hat-trick against Fenerbahce, he has been prolific at club level, netting his second three-timer at Bolton last month.

So far, he has netted 40 goals in 105 appearances for the Red Devils, with his recent strike in England's friendly draw with Holland last week was his 12th in 36 games for his country.

In extending his commitment to the Old Trafford outfit, Rooney has also shot down any lingering suspicion of resentment, either against Alex Ferguson for his public expressions of worry over the striker's fitness ahead of the World Cup, or team-mate Cristiano Ronaldo for his part in the Croxteth-born star's dismissal in the quarter-final defeat to Portugal.

That negotiations between United and Rooney's trusted advisor Paul Stretford only began two months ago emphasises the willingness of both parties to get the deal done.

And, having already secured Ronaldo to a long-term contract until 2010, Ferguson feels he already has the platform to build a team that will contest for major honours for quite a while yet.

"Obviously, I think for everyone at the club, it is great news that Wayne has committed his future to Manchester United," he said.  "It reflects our intention to build a team to stay together.  Cristiano Ronaldo signed a new contract last year and we have other exciting young talent here too.

"We see Wayne and Cristiano emerging as the best players in the world. They have their best years in front of them and we will all be lucky to witness that."