Beckham rejected higher-paying offers from a number of clubs, including mega-rich Paris Saint-Germain. He preferred to stay in L.A. where his family is well settled.
"This was an important decision for me," Beckham said. "I had many offers from clubs from around the world, however, I'm still passionate about playing in America and winning trophies with the Galaxy."
"I've seen first hand how popular soccer is now in the States and I'm as committed as ever to growing the game here. My family and I are incredibly happy and settled in America and we look forward to spending many more years here."
His new deal will reportedly pay him $15 million over two years. It also will allow him to play for Great Britain at the 2012 Olympics in London (his hometown), if he is selected.
Beckham signed a five-year deal with the Galaxy in 2007, adding much needed star power to the American top flight. But he struggled to make an impact on the field in the early years, battling injuries and the strain of intercontinental travel (playing for England's national team). He also clashed with teammates and supporters who questioned his commitment to the team.
But in 2011, the former England captain refocused himself and turned in his best season with the Galaxy. He registered 15 assists and earned MLS Best 11 honors, as he lead the Galaxy to the 2011 MLS Cup title.
He will return to competitive action on March 7, when the Galaxy plays the first leg of its CONCACAF Champions League quarterfinal at Toronto FC. It opens the 2012 MLS season three days later against Real Salt Lake.
Have a question for Marcus Kwesi O'Mard? Send it to him via Twitter at @NESNsoccer or send it here. He will pick a few questions to answer every week for his mailbag.
