Drury led Stamford to a second placed finish in the NPL Midlands Division, before they were beaten by Belper Town in the play-offs.
He will now remain in charge of the Daniels until the end of the 2024/25 season.
Chairman David Whitby said: “Following the disappointment of missing out on promotion this season, the Club is more determined than ever to be playing at a higher level in the Football Pyramid and with Graham at the helm, sharing our vision on and off the pitch, we are certain that we will see the continued growth and development of Stamford AFC.
“Grahams energy and passion has a massive impact throughout the Club and I know all involved with Stamford AFC will be pleased with his further commitment and the exciting goals ahead of us.”
Drury added: “After the heartbreak of the playoffs how can we end it there. I didn’t know if I would continue after the game, I couldn’t help feel we let the club and fans down but when I sat back and thought about how many fans faces we put smiles on during the season and how it helps so many people’s mental health, I feel it’s important to do it all again but this time go one better.”
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