Ten Hag confirmed reports that a United delegation met him on holiday to confirm they wanted him to continue after a two-week post-season review.
"The club management came to me while I was on holiday in Ibiza," Ten Hag told NOS. "They suddenly showed up on my doorstep and told me they wanted to continue with me.
"Manchester United have told me that they spoke with (Thomas) Tuchel, but they eventually came to the conclusion that they already have the best manager.
"Ineos took their time. They are new in football, it's normal to reflect on the season. It's no secret that they talked with multiple candidates."
Ten Hag also revealed a new contract is now being discussed.
He said: "Manchester United and I still have to find an agreement for the new contract. This isn't easily done - we are still going to have to talk about this."