Tyler Blackett has signed a new Manchester United deal until 2017, with the option of a further year.

The highly-rated youngster is the last of three priorities from the club's academy to sign a contract extension after Jesse Lingard and Patrick McNair.

United have reached an agreement with the Manchester-born 20-year-old which will see his weekly wage rocket from £2,000 to £20,000.

Tyler Blackett is set to pen a new long-term deal at Manchester United worth £20,000-a-week

The 20-year-old defender says he is 'thrilled' to have signed a new deal at his boyhood club

'I'm thrilled to have signed my new contract. I have supported United all my life and have been here since I was eight years old,' Blackett told the club's official website on Thursday.

'To come through the Academy and make my debut this season was a dream come true. I want to keep improving within the first-team squad with the help of the manager, coaches and the players around me.'

United boss Louis van Gaal added: 'I am delighted that Tyler has signed a new contract. He is another young player that has risen through the Academy system to break into the first-team squad this season.

'Tyler has great potential and I believe he is at the right club to continue his development and progression to become a great defender.'

Before the extension was confirmed a United source told Sportsmail: 'Lingard and McNair have extended their deals but Blackett was always the top priority.'

Defender Blackett has made 10 appearances this season although his last came on January 11 when United lost 1-0 to Southampton at Old Trafford.

Blackett (left) has made 10 appearances for United this season - with his last coming against Southampton

He started the campaign in the team after impressing Van Gaal in the summer and played in the first five Premier League matches but was sent off in the 5-3 defeat at Leicester City.

Blackett was again red-carded in his last appearance for the Under 21s, a 1-1 draw with Sunderland.

Reece James also extended his contract with Manchester United on Thursday.

The versatile left-back, who can also perform in midfield, scored twice against LA Galaxy on last summer's first-team tour and made his competitive debut in the Capital One Cup against Milton Keynes Dons.

After being on the bench for the opening three Barclays Premier League games of the season, he joined Rotherham United on loan in November to obtain more experience. Following his return to Old Trafford, he has been a mainstay in Warren Joyce's Under-21 side and helped the team earn a 1-1 draw with 10 men at Sunderland on Monday.

James has been rewarded for his progress with fresh terms, on the same day that colleague Tyler Blackett's new contract has also been confirmed.