Since taking over from Mick Harford in December, Knill has brought the team around from relegation certainties to be just a draw away from League 1 survival, and many fans have changed thier minds on his future after orignially not wanting him to have the job.
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The club statement said: "We feel that Alan has done a superb job in very difficult circumstances since he took over and we are delighted he has agreed to commit himself for the next two years.
"He is a very dedicated man who puts a lot of energy into his work that has seen us in with a good chance of avoiding relegation despite all the external worries, the squad he has inherited have encountered.
"The timing of this announcement will hopefully give everyone at the club a major boost just ahead of crucial game against MK Dons at Millmoor on Saturday and this just emphasises the faith we have in Alan.
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"He has accepted the job despite the fact that the club faces the possibility of a ten points deduction at the start of next season. He has stuck to his coaching principles and the team is playing the kind of football not seen here for many a year."
All at MillersMAD congratulates Alan and wishes him all the very best of luck.