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The United manager Nigel Adkins had warned the player he would not play for the first-team again until the talks had concluded, and he has been added to the squad for Saturday's friendly at Doncaster Rovers.
"We're very pleased [the] negotiations have come to a conclusion and Marcus can concentrate on playing," Adkins told BBC Radio Humberside.
"He's done very well since he's reported back for pre-season training. Noq both full-backs are under contract for the next two seasons so hopefully that gives us a good platform to go on as we mean to continue."
The news casts doubts over the future of the former Manchester United left-back Michael Lea, who is on trial at Glanford Park.