“I am very pleased to confirm that we agreed terms with Nemanja three or four weeks ago on a new long-term deal with the club,” Gill told MUTV.
“We sat down with Nemanja and his advisor at the end of last season and started discussions. They broke up when Nemanja went away to the World Cup, but resumed when Serbia were knocked out.
“It’s yet to be signed – the paperwork is now being sorted by our lawyers and being checked by Nemanja’s advisors. He’s still away on holiday but the plan is that when he gets back the papers will be signed.
“We’ve shaken hands on it and we’re confident it will all be signed and sealed in early August. It’s great news for Manchester United and great news for Nemanja and the fans.”
Speculation has been rife regarding VidicÃ¢â‚¬â„¢s happiness at the club since early in the year with his agent suggesting he would consider a move to Spain or Italy.
But the club has announced that the 28-year-old has verbally agreed to the new deal.
Vidic has played a crucial role in UnitedÃ¢â‚¬â„¢s recent success, forming an effective partnership with Rio Ferdinand since joining from Spartak Moscow for Ã‚Â£7million in 2006.
And with clubs such as Chelsea and neighbours Manchester City overtaking United in their ability to shell out the highest transfer fees, holding on to prize assets is a priority for Sir Alex Ferguson.
United have added former Fulham youngster Chris Smalling to their squad and have the impressive Northern Irishman Johnny Evans as a back-up for Vidic and Ferdinand.
But the England captain has struggled with recurring back problems and missed the recent World Cup with a knee injury.
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