The 37-year-old has been in charge of the Pirates since August 2005 but has held the title of First Team coach.
That has now changed under the terms of his new deal and the former Wales international is pleased to have put pen to paper.
"I am delighted to have been given this opportunity to continue the work that (director of football) Lennie Lawrence and I are undertaking at Bristol Rovers," Trollope told his club's official website.
"We feel that we have made a great deal of progress over the last four years, and that we are now shaping a team ready to challenge for a place in the Championship.
"I would like to thank the chairman and the board for the faith they have shown in me."