GARY MILLS is staying on as York City manager.

The club announced tonight that an agreement had now been signed which will see the 55-year-old continue at the helm in National League North next season.

The club statement said: “York City is pleased to announce that terms have been agreed for Gary Mills to remain as York City manager for the 2017/18 campaign.

“Having sent his proposed contract to the LMA (League Managers’ Association) for review, both parties have now agreed on terms for Gary to stay with the club for next season.

“The club is thankful that the situation has been resolved efficiently.

“We are now looking forward to the FA Trophy final at Wembley, as well as further ahead to next season with Gary at the helm in the National League North.”

Mills’ future had been up in the air after club chiefs effectively issued him an ultimatum to sign a reduced-terms deal by Wednesday in order to stay in charge.

The former European Cup winner agreed in principle to accept it but the parties had awaited ratification from the LMA, Mills’ representatives.

Mills was unavailable for comment tonight.

The former Gateshead and Wrexham chief, who returned to the Bootham Crescent hot seat last October with the club already in danger of a second successive relegation, came within minutes of keeping them in the National League after his team displayed top-10 form following the turn of the year.

In his last spell in charge at City from late 2010 to March 2013 he won promotion back to the Football League as well as the FA Trophy in a memorable Wembley double in May 2012.