Sir Alex Ferguson believes Paul Scholes still has a lot to offer Manchester United Football Club.

The 35-year-old is out of contract at the end of the season, and hinted last year that he may hang up his boots rather than further extend his stay at Old Trafford.

However, Ferguson believes the midfielder still has a lot to offer the team, as demonstrated on Tuesday night when he scored in the 3-2 win at AC Milan in the UEFA Champions League.

Scholes has been offered a new one-year deal at the Premier League champions, and his manager hopes the player will agree to put pen-to-paper.

"I would be happy to do something about Scholes' contract but there is nothing yet," said Sir Alex. "It depends on what Paul thinks himself and I haven't addressed it with him.

"There is no need for him to think of retirement like some people were saying. He is showing on the field what he is capable of and, to me, another year would not be a problem for the lad."

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