Moores was appointed to the role on a short-term contract on 30 June less than two months after his second unceremonious sacking by England.
Nottinghamshire were facing relegation in the LV= County Championship on Moores’ arrival, but the former Sussex and Lancashire coach oversaw a dramatic reversal of fortunes.
The Trent Bridge club won 14 of their final 20 fixtures in all formats, ensuring a third place finish in Division One, while they were semi-finalists in the Royal London One-Day Cup.
Now he has agreed to stay, Newell said: “I think it’s excellent news. There’s no doubt in the second half of this season we played some really good cricket and Pete’s contribution to that was a major one.
“We wanted to continue with that structure going forward so we are very pleased he has decided to stay with us. It’s a full time role during the summer but it does give him the opportunity to do one or two other things in the off-season.
“We are only 20 minutes from his home so given the fact that he has spent a lot of his working life doing a lot of miles and travelling an awful lot, I am sure there is a lifestyle side to it.
“But hopefully he can see here some good young players, players who want to be coached and want to work with him at a high level, get better and hopefully produce some more international players.
“He has enjoyed the second half of this season and has certainly helped us play some better cricket.”
On Moores’ role, Newell added: “It was mainly one to one coaching, but assisting with fielding sessions and fielding drills and fielding days. He was mainly one to one with the batsmen pre-match and on training days as well as on days inbetween games when we felt we could give the players a little bit more coaching, a bit more help with their game, and many of them thrived on that.
“Part of Pete’s role is assist Wayne Noon and Andy Pick and also myself. To keep throwing new ideas at us and help try to stimulate things to make the team better and make us better as coaches and managers. That seemed to work for us this season and hopefully we can make it work in the next two.”