The Glovers are battling to beat the drop this season, as they are just two points above the bottom four with 11 games left of the season.
“I’m really privileged to be offered a new contract and I’m looking forward to the next two-and-a-half years at the football club,” Skiverton told the club’s official website.
“There is a longer term plan in place which includes the recruitment of new players and with this backing from the board, it really helps me get on with my job.
“Over the next few years, we want to add to players like Paul Huntington, Luke Ayling and Ed Upson and start to build a strong squad so that we won’t have to rely on the loan market to such a degree.
“It really helps knowing I’ve got the time to fulfil the ambitions of the club, myself and the supporters and to really move the club on, you need that stability.
“For the moment, though, it’s about short-term goals and to keep the club in League One is my number one priority.”
