Mata's previous contract expired at the end of June. The 33-year-old found minutes hard to come by last season with competition for places from Bruno Fernandes, Paul Pogba and Donny van Beek, making only 18 appearances in all competitions.
"The World Cup winner's influence on Ole Gunnar Solskjaer's young, improving squad is invaluable and the manager continues to be a huge supporter of the fleet-footed Spaniard," the club said in a statement.
United finished second in the league last season behind Manchester City, and they begin the new campaign with a home game against Leeds United on Aug. 14.
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