He will now spend the next two season's as a United player, with the club having the option to extend it a further year.
The winger, 29, who has also played as an emergency forward this season, still had another 12 months on his current deal but United have signalled a new policy on contracts be offering him a longer stay.
This summer the Iron had 12 players out of contract. Marcus Williams and Paul Hayes have turned down new offers, while the club are waiting to hear from Sam Togwell, Kenny Milne, Matt Sparrow, Grant McCann, Jonathan Forte, Sam Slocombe, and Matt Godden.
Left-back Rory Coleman has signed a one-year deal, club captain Cliff Byrne and young defender Niall Canavan have indicated they will accept their offers.