Gill will stay at Twerton Park until the summer of 2021.
He has transformed the club from struggling in the National League South to genuine promotion contenders.
The club are in a great place, flying high in the league and with the redevelopment of not only stadium but the local area.
Now the manager, in charge since October 2017, wants the team to be playing National League football when all that work is complete.
“I have thoroughly enjoyed the process of building not only a competitive squad but also creating a new club philosophy on and off the pitch,” he told the club’s website.
“I really do feel it’s a very exciting time to manage and be part of Bath City with the competitive aspirations on the pitch alongside the vision of the redevelopment plans.
“The brand of football is very important to us all but it’s the type of people that help you create the environment.
“The team is full of talent but more importantly we now have the right type of person playing for the club who are here for all the right reasons. I’d like to thank the players for all their hard work and commitment to date.”
He told fans: “And to you the supporters a huge thank you for your patience, shared vision and the fantastic support you have given me since I arrived at the club.
“We as a staff and squad of players are determined to bring you further success for this wonderful football club of ours. The play-offs have been our realistic target since the first day of pre-season and we currently stand in a strong position in being able to consolidate that.
“Let’s give this fantastic group of players as much support and encouragement as we can between now and the end of the season.”