Manchester United midfielder Paul Scholes has confirmed that he will retire at the end of the season.

The 38-year-old announced his decision on Saturday evening saying that he felt it was the right time to step down after the departure of manager Sir Alex Ferguson and subsequent arrival of David Moyes next season.

"Yes, I am finally hanging up my boots for good!" Scholes told the club's official website.

"Playing football is all I have ever wanted to do, and so to have had such a long and successful career at Manchester United, under the greatest manager of all time, has been an honour.

"The team has the right balance and will continue to thrive under the leadership of David Moyes."

The retirement is the second time Scholes has left the game after he quit football back in 2010 only to be coaxed out of it by Ferguson in January 2011.

In total, the former England international made 716 appearances for the Red Devils in a career that has spanned 20 years.

The news rounds off a week of upheaval at the club after it was announced that Everton boss Moyes would be taking over as United manager next season following Ferguson's decision to retire this summer.