Knill took charge at Millmoor - where he was already a coach - after Mick Harford was sacked.
He looks to have guided the Yorkshire side to safety, and they sit four points above the relegation zone with three games to play.
Their final home game of the season is against the Iron on Saturday, and a win would virtually secure their League One status for another season.
Speaking at a fans forum, company secretary Paul Douglas said: "We think Alan has done a very good job, He took charge in unbelievable circumstances, with the club struggling on and off the field.
"With no money, he has gone about the job in a professional way, sensible and mature.
"He has got the team going about it in an exciting way and the lads have been putting in a massive effort in the bid to avoid relegation."
The club look certain to apply to go into voluntary adminstration in the close season, which will see them start next season with a 10 point deduction.