After taking over in September, Johnson gave the Gulls a new lease of life - shooting up the table and eventually winning the National League South.
It was a record-breaking season for the club as they bagged their first league title in almost a century.
As a result of their incredible season, Johnson secured the title of National League South Manager of the Season and says staying around was an easy decision.
"I've really enjoyed my time and to be honest, it was a no brainer for me," he told the club's official website.
"I just felt it was a natural thing to do because I've got no thoughts about going anywhere or doing anything else because I've enjoyed what's been happening to this football club.
"I'm very happy with my lot here and I'm looking forward to pre-season."
Torquay United get their National League season underway at Plainmoor against Boreham Wood on August 3.
You can view a full list of the club's fixtures by clicking here.