The 52-year-old returned to Vale Park for his second spell in charge in 2011 and guided the club to promotion to League One in his second season.
Vale finished ninth in their first campaign back in the third tier and Adams has been rewarded with a new deal.
"After extensive talks with the chairman I'm very happy to commit myself to the club again," he told Vale's official website.
"Next season we want to progress on what was a brilliant season last year; no-one wants to rest on their laurels, we all want to push on and progress.
"We have a number of new players hopefully going to sign for the club and, more importantly, we've had existing players renewing which is excellent news for everyone as it means the club is in good shape for the coming season."
Chairman Norman Smurthwaite added: "This is the foundation of something that is going to make this club great.
"It's taken a while in the making but now it's happened I'm confident that with Micky and most of the squad staying on, we will have something here that the fans can shout about and be proud of."