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The turnaround Donachie has achieved has impressed the fans and board alike and with one eye on next season, the club have moved to secure the services of the former Scotland international for the foreseeable future.
"I'm delighted that Willie has agreed to continue as our manager for the next two seasons," revealed chairman Stuart Till.
"When he took the job on we had taken just five points from the first ten games and things were looking quite bleak. Had the season started then we would now be comfortably in the Play-Off positions, having taken 47 points from the next 28 matches and this achievement speaks for itself.
"He has brought stability to the club and shown great skill in the way he manages the players. I believe that he has the qualities to become a very good Millwall manager indeed."