Giggs' 16-year-old son, Zach, underwent a successful trial with the Blades and subsequently ended his four-year association with United in favour of a scholarship at Bramall Lane.
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The move means Giggs is unlikely to follow in his father's footsteps of stepping out in the famous red shirt.
The Former Manchester United and Wales winger won 13 league titles and two Champions League's during a decorated career spanning 24 years.
But the youngster has opted to form his own pathway in football at a club that could give him the best possible opportunity to break into the first team.
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Giggs signed his new contract against the backdrop of a wall reading the words, 'The Academy of Opportunity.'
The wall featured a number of the club's youth prospects who went on to forge successful careers.
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Among the names visible are Phil Jagielka, Harry Maguire, Kyle Walker and Dominic Calvert-Lewin.
Sheffield United's hopes of signing Giggs would not have been possible had the club failed to achieve promotion to the Premier League.
The Blades were slapped with a transfer embargo owing to non-payment of outstanding transfer funds but their return to the top tier of English football has seen the ban lifted.
And with Premier League football confirmed for next season, Giggs has the opportunity to emulate his father by featuring in the top flight, should he impresses in the youth set-up.