Erik ten Hag said he was aware that Manchester United had spoken to other managers before the Premier League club decided to stick with the Dutchman after a difficult season.
Ten Hag said he was on a holiday in Ibiza when members of the United hierarchy arrived to inform him they wanted him to remain as the United manager.
Former Chelsea and Bayern Munich boss Thomas Tuchel and England manager Gareth Southgate were among those linked with the position after United finished eighth in the Premier League last season.
Speaking on Dutch TV channel NOS, Ten Hag said: “The club management came to me while I was on holiday in Ibiza. They suddenly showed up on my doorstep and told me they wanted to continue with me.
“As in any organisation, it is wise to evaluate. Manchester United did that too. The new owner (Jim Ratcliffe) is new to football, he has taken his time.
“They have indeed told me that they have spoken to other managers. That is not even allowed in the Netherlands.
“You are not even allowed to talk to another club if there is a current trainer there. But in England the rules and laws are different.
“But in the end they came to the conclusion that they have the best trainer,” Ten Hag quipped.
The two parties are in the process of agreeing on a new contract after Ten Hag engineered a stunning victory for United over Manchester City in the FA Cup final.
“We have had good discussions with each other, various topics have been discussed,” he said.
“The conclusion is that we will continue together and that they will extend my contract. We still have to reach an agreement on that.”
Manchester United might have won the FA Cup but their eighth place finish was their worst since 1990. “It was a turbulent season. Never a dull moment”, Ten Hag added.