Simpson took over as manager at Moss Rose in April 2010 following the death of Keith Alexander.
Chairman Mike Rance told the club’s official website: “Gary has brought the club through another hugely difficult season, pulling together a talented, young group of players.
“We are happy to have shown this commitment to Gary in what is the first step towards building the long-term future of the club.”
Simpson added: “Clearly I am delighted to extend my contract by another 12 months. This club means a hell of lot to me.
“It’s not just a job and there’s a strong emotional bond given all that’s happened since I’ve been here. It’s a tough job but one I enjoy and one I think we’re doing OK at.”
