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 | Gillingham | 9 | 6 | 1 | 2 | 12 | 3 | 9 | 19 |
| 2 | Notts County | 9 | 5 | 3 | 1 | 17 | 8 | 9 | 18 |
| 3 | Walsall | 9 | 6 | 0 | 3 | 17 | 10 | 7 | 18 |
| 4 | BarrowBarrow | 9 | 5 | 1 | 3 | 11 | 6 | 5 | 16 |
| 5 | Doncaster RoversDoncaster | 9 | 5 | 1 | 3 | 12 | 12 | 0 | 16 |
| 6 | Fleetwood TownFleetwood | 8 | 4 | 3 | 1 | 16 | 9 | 7 | 15 |
| 7 | Port Vale | 9 | 4 | 3 | 2 | 14 | 12 | 2 | 15 |
| 8 | Grimsby Town | 9 | 5 | 0 | 4 | 13 | 14 | -1 | 15 |
| 9 | Newport CountyNewport | 9 | 5 | 0 | 4 | 15 | 17 | -2 | 15 |
| 10 | Chesterfield | 9 | 3 | 4 | 2 | 15 | 8 | 7 | 13 |
| 11 | AFC Wimbledon | 6 | 4 | 1 | 1 | 9 | 4 | 5 | 13 |
| 12 | Crewe AlexandraCrewe | 8 | 4 | 1 | 3 | 8 | 9 | -1 | 13 |
| 13 | Bradford CityBradford | 9 | 3 | 3 | 3 | 11 | 10 | 1 | 12 |
| 14 | MK Dons | 9 | 3 | 2 | 4 | 12 | 11 | 1 | 11 |
| 15 | Colchester UnitedColchester | 9 | 2 | 4 | 3 | 13 | 15 | -2 | 10 |
| 16 | Cheltenham TownCheltenham | 9 | 3 | 1 | 5 | 11 | 14 | -3 | 10 |
| 17 | Tranmere RoversTranmere | 8 | 2 | 4 | 2 | 4 | 8 | -4 | 10 |
| 18 | Harrogate TownHarrogate | 9 | 3 | 1 | 5 | 9 | 16 | -7 | 10 |
| 19 | Bromley | 9 | 2 | 3 | 4 | 12 | 14 | -2 | 9 |
| 20 | Salford City | 8 | 2 | 3 | 3 | 5 | 9 | -4 | 9 |
| 21 | Swindon TownSwindon | 9 | 1 | 4 | 4 | 9 | 13 | -4 | 7 |
| 22 | Carlisle UnitedCarlisle | 9 | 2 | 0 | 7 | 10 | 19 | -9 | 6 |
| 23 | Morecambe | 9 | 0 | 4 | 5 | 7 | 12 | -5 | 4 |
| 24 | Accrington StanleyAccrington | 8 | 0 | 3 | 5 | 9 | 18 | -9 | 3 |
| > League Two Full Table | |||||||||
