The 60-year-old took charge of the club last month on an interim basis in the wake of the departure of Martin Allen.
"The players and I are delighted that Peter has agreed to stay on at the club and we wish him every success in his ongoing efforts to push the team up the table," chairman Paul Scully told the club's official website.
Taylor previously spent time in charge of the Gills between 1999 and 2000.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Port Vale | 16 | 10 | 3 | 3 | 24 | 16 | 8 | 33 |
| 2 | Crewe AlexandraCrewe | 15 | 8 | 4 | 3 | 19 | 13 | 6 | 28 |
| 3 | Doncaster RoversDoncaster | 16 | 8 | 4 | 4 | 22 | 18 | 4 | 28 |
| 4 | Walsall | 14 | 8 | 3 | 3 | 27 | 15 | 12 | 27 |
| 5 | MK Dons | 16 | 8 | 3 | 5 | 27 | 19 | 8 | 27 |
| 6 | Notts County | 16 | 7 | 6 | 3 | 23 | 15 | 8 | 27 |
| 7 | Grimsby Town | 16 | 8 | 1 | 7 | 19 | 25 | -6 | 25 |
| 8 | Bradford CityBradford | 16 | 6 | 5 | 5 | 21 | 17 | 4 | 23 |
| 9 | Gillingham | 15 | 7 | 2 | 6 | 16 | 12 | 4 | 23 |
| 10 | AFC Wimbledon | 13 | 7 | 1 | 5 | 21 | 11 | 10 | 22 |
| 11 | Chesterfield | 16 | 5 | 7 | 4 | 29 | 20 | 9 | 22 |
| 12 | BarrowBarrow | 16 | 6 | 4 | 6 | 17 | 15 | 2 | 22 |
| 13 | Fleetwood TownFleetwood | 14 | 5 | 6 | 3 | 20 | 15 | 5 | 21 |
| 14 | Salford City | 16 | 5 | 6 | 5 | 15 | 18 | -3 | 21 |
| 15 | Newport CountyNewport | 16 | 6 | 2 | 8 | 19 | 26 | -7 | 20 |
| 16 | Cheltenham TownCheltenham | 16 | 5 | 3 | 8 | 21 | 25 | -4 | 18 |
| 17 | Harrogate TownHarrogate | 16 | 5 | 3 | 8 | 14 | 22 | -8 | 18 |
| 18 | Accrington StanleyAccrington | 15 | 4 | 5 | 6 | 20 | 24 | -4 | 17 |
| 19 | Tranmere RoversTranmere | 14 | 4 | 5 | 5 | 10 | 17 | -7 | 17 |
| 20 | Bromley | 15 | 3 | 7 | 5 | 17 | 19 | -2 | 16 |
| 21 | Colchester UnitedColchester | 15 | 2 | 8 | 5 | 18 | 22 | -4 | 14 |
| 22 | Swindon TownSwindon | 16 | 2 | 7 | 7 | 18 | 25 | -7 | 13 |
| 23 | Carlisle UnitedCarlisle | 16 | 3 | 3 | 10 | 14 | 29 | -15 | 12 |
| 24 | Morecambe | 16 | 2 | 4 | 10 | 14 | 27 | -13 | 10 |
| > League Two Full Table | |||||||||
