A former player of the club, Carrick was appointed the interim manager in January following their decision to part ways with Ruben Amorim, and quickly led them up the Premier League table.
He enjoyed a dream first match, a 2-0 win over rivals Manchester City, and that was followed by a 3-2 victory away to Arsenal. After that, he also presided over wins against Liverpool, Chelsea, Aston Villa and Tottenham.
While results against lower-profile clubs haven't been as impressive, he's nonetheless taken United from seventh to third and has secured Champions League qualification.
This will be the second permanent role of his managerial career, with him previously spending three years at the helm of Championship club Middlesbrough.
"From the moment that I arrived here 20 years ago, I felt the magic of Manchester United," Carrick said in a statement. "Carrying the responsibility of leading our special football club fills me with immense pride.
"Throughout the past five months this group of players have shown they can reach the standards of resilience, togetherness and determination that we demand here. Now it’s time to move forward together, with ambition and a clear sense of purpose. Manchester United and our incredible supporters deserve to be challenging for the biggest honours again."