Young is one of United's longest-serving players and one of five players in the current squad to win a Premier League title during their time at the club.
The Stevenage-born player, who started out as a forward but has switched to full back later in his career, has made 25 appearances for United this season, including nine under caretaker boss Ole Gunnar Solskjaer.
Young becomes the sixth United player to sign a new contract this season after defenders Luke Shaw, Chris Smalling, Phil Jones, midfielder Scott McTominay and forward Anthony Martial.
(Reporting by Hardik Vyas in Bengaluru; Editing by Christian Radnedge)
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