Parry's current one-year deal was due to expire this summer but he has been rewarded for his impressive work.
Chairman Peter Johnson said: "I'm delighted Les has agreed to stay on as our manager.
"Despite the financial restrictions he works under, he's done a really good job that I know is admired by other clubs.
"We've been competitive all season, even when going up against a lot of clubs with bigger squads and bigger budgets."
Parry added: "I'd like to thank the chairman and the board for allowing me to continue as manager. I'd also like to thank my coaching staff at the club for their support and hard work all season as it has been a team effort."
Source: PA
Source: PA