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