The 39-year-old, who has been in charge since July 2015, put pen-to-paper on an extended deal to remain at The Chorley Group Victory Park Stadium along with assistants Jamie Vermigilio and Jonathan Smith.
The former Blackburn Rovers and Crystal Palace striker, who is now in his seventh year with the club, said: "This season is a big one for us and we all know how close we went last time around. Everyone is focussed on picking up where we left off and seeing just where it will take us. He added: “There have been a lot of changes over the summer off the field that can only be good for the club and it is clear we are building a strong infrastructure which will only take us forward."
Chief Executive Dave Riche said: "This is great news for us and something which the directors have been keen to seal. Having such a strong management team in place and respected names in the dugout is a major asset for Chorley Football Club.
“This season is vitally important and we are determined to spread the word about the club deep into the community and beyond.” He added: “We have a superb loyal fan base and some excellent sponsors and backers already and we hope to grow that at all levels to take Chorley Football Club to the next level and ultimately beyond".