Iqbal has penned a new long-term deal that will keep him at Old Trafford until 2025.
The 19 year-old was born in Manchester and plays international football for Iraq - his mother's birth country. He joined United at the age of nine and has the option to extend his deal for further year.
"Iqbal has agreed a new deal that will keep him at United until at least June 2025, with the option to extend for a further year.
"He will be looking to hone his talents behind the scenes and maintain his development at the club in the coming months and years."