The 61-year-old returned to the Priestfield Stadium last year having previously managed the side for the 1999-2000 season.
Taylor's new deal, which he is yet to officially sign, will keep him at the club until summer 2016.
The Gills finished their League One campaign in 17th place in the table on Saturday with a 1-1 draw at home to Shrewsbury Town
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Port Vale | 15 | 9 | 3 | 3 | 23 | 16 | 7 | 30 |
| 2 | Walsall | 14 | 8 | 3 | 3 | 27 | 15 | 12 | 27 |
| 3 | Notts County | 15 | 7 | 6 | 2 | 23 | 13 | 10 | 27 |
| 4 | Doncaster RoversDoncaster | 15 | 8 | 3 | 4 | 21 | 17 | 4 | 27 |
| 5 | Crewe AlexandraCrewe | 14 | 7 | 4 | 3 | 17 | 13 | 4 | 25 |
| 6 | MK Dons | 15 | 7 | 3 | 5 | 24 | 17 | 7 | 24 |
| 7 | Grimsby Town | 15 | 8 | 0 | 7 | 19 | 25 | -6 | 24 |
| 8 | Gillingham | 15 | 7 | 2 | 6 | 16 | 12 | 4 | 23 |
| 9 | Chesterfield | 15 | 5 | 7 | 3 | 28 | 18 | 10 | 22 |
| 10 | Bradford CityBradford | 15 | 6 | 4 | 5 | 20 | 16 | 4 | 22 |
| 11 | BarrowBarrow | 15 | 6 | 4 | 5 | 16 | 12 | 4 | 22 |
| 12 | Fleetwood TownFleetwood | 14 | 5 | 6 | 3 | 20 | 15 | 5 | 21 |
| 13 | Salford City | 15 | 5 | 5 | 5 | 14 | 17 | -3 | 20 |
| 14 | AFC Wimbledon | 12 | 6 | 1 | 5 | 18 | 10 | 8 | 19 |
| 15 | Newport CountyNewport | 15 | 6 | 1 | 8 | 19 | 26 | -7 | 19 |
| 16 | Cheltenham TownCheltenham | 15 | 5 | 3 | 7 | 19 | 22 | -3 | 18 |
| 17 | Tranmere RoversTranmere | 14 | 4 | 5 | 5 | 10 | 17 | -7 | 17 |
| 18 | Accrington StanleyAccrington | 14 | 4 | 4 | 6 | 18 | 22 | -4 | 16 |
| 19 | Bromley | 14 | 3 | 6 | 5 | 16 | 18 | -2 | 15 |
| 20 | Harrogate TownHarrogate | 15 | 4 | 3 | 8 | 12 | 21 | -9 | 15 |
| 21 | Colchester UnitedColchester | 14 | 2 | 7 | 5 | 17 | 21 | -4 | 13 |
| 22 | Swindon TownSwindon | 15 | 2 | 6 | 7 | 16 | 23 | -7 | 12 |
| 23 | Carlisle UnitedCarlisle | 15 | 3 | 2 | 10 | 13 | 28 | -15 | 11 |
| 24 | Morecambe | 15 | 2 | 4 | 9 | 14 | 26 | -12 | 10 |
| > League Two Full Table | |||||||||
