Warnock, who replaced Jonathan Woodgate as boss on 23 June, guided Boro to 17th having battled against relegation for much of the season.
Assistants Kevin Blackwell and Ronnie Jepson will also be staying on.
"I've really enjoyed myself since I've come up here," Warnock told the club website. "The people in the area have made me and my family really welcome.
"It's been hard work, make no mistake. But this is a great club and I'd like to take it towards the other end of the table.
"I just felt it was the right thing to do; to continue to shape the squad and take it forward. That's what I'm going to try to do.
"I must have retired about five times now, but there's always something that's brought me back; a challenge, helping somebody out, and this is a similar situation."