Butt: New contract (Jamie McDonald/Allsport)

The England duo have put pen to paper on six and five-year deals respectively with Sir Alex Ferguson's side.

And Butt's signing ends speculation that he could have been on the move following the imminent arrival of Argentina international Juan Sebastian Veron from Lazio.

Scholes told MUTV: 'A lot of people say English players have to go abroad to make themselves better players - but as United are competing on a world stage anyway I don't think that matters.

'We've shown in the past that we've got good team spirit and that's because we've been together for so long. Hopefully that will continue.'

Butt added: 'I'm delighted. I have been at the club for over ten years and have grown very fond of the club and the fans.'

Butt and Scholes have become the latest in a string of United stars to commit their futures to the club on long-term deals, following Andy Cole, Jaap Stam, Ole Gunnar Solskjaer and Gary and Phil Neville.

And manager Sir Alex Ferguson said: 'I'm delighted they have agreed new contracts. It's great news for the club and for the fans.

'They have grown up at United and that is shown in their outstanding play and commitment to the club.'