Darren Way has joined Yeovil Town on 31 December when he took over following the departure of former manager Paul Sturrock.
Since the arrival of Way, Yeovil have only lost three of their 16 league games and are now 14 points clear of the relegation zone in the table.
The 36-year-old's contract was set to expire this summer, but he has now signed a new three-year deal.
Way told the club's website, "I feel very proud and honoured to have signed a new contract.
"I have a vision for the club where I can nurture the future talent; this is a fantastic football club to build a future for and I will take 100% responsibility in making sure I do that."
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— Yeovil Town FC (@YTFC) April 6, 2016