Saturday's 2-1 victory at Sheffield Wednesday saw City end the campaign with seven wins from their last eight matches to finish eighth, their highest position in 31 years.
"Paul has done a superb job developing, managing the team and making many decisive substitutions during matches and the team have responded brilliantly," said Chorlton.
"I am sure that I speak for the club's board of directors and for all the supporters when I say thanks for a great and memorable season."
Source: PA
Source: PA