The 29-year-old centre half, who has made more than 300 appearances for United since joining from Fulham in 2010, penned the deal ahead of Sunday's Premier League clash with Liverpool.
He told the United official website: "It's a great feeling to know the manager and the club back me, I'm looking forward to repaying them!
"This is my ninth season with the club and I am delighted to be continuing my progression with this team.
"It is a real honour to play for Manchester United and we are all now concentrating on the busy schedule of games throughout the festive period," added Smalling, who has made 18 appearances for the club this season.
United manager Jose Mourinho said: "I am very happy Chris has signed a new contract. Chris has been with the club for a number of years and is now one of the senior players within our squad."
(Reporting by Neil Robinson; Editing by Ian Chadband)
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