
The Plymouth-born 46-year-old took up the role in late March on a short-term deal after Jimmy Ball was appointed as the Gulls' new boss following the departure of Paul Wotton.
Way has now agreed a deal to remain as Ball's No 2 ahead of the 2026/27 campaign after Torquay narrowly missed out on promotion to the National League at the end of last term.
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Argyle will play what has become an annual pre-season game against Torquay at Plainmoor on Tuesday, July 21.
Torquay said on their official website about the new deal for Way: "Having initially began working with Torquay boss Jimmy Ball shortly after his appointment back in March, the partnership proved to be an instant success, as a rejuvenated United side went within a whisker of securing promotion via the National League South Play-Offs.
"With The Gulls ultimately losing out to Hornchurch in the Promotion Final in heart-breaking fashion, Ball and Way will now be determined to go one step further in 2026/27, as the duo look to reshape the squad for another tilt at promotion this time around."
Way became Argyle's under-18s head coach in January 2020 after previously being the first team manager at Yeovil Town.
He remained at Home Park until September 2023 when he joined Fleetwood Town as assistant manager to Lee Johnson, his former long-time Yeovil team-mate.
Johnson was sacked by Fleetwood at the end of that December, however, with Town second from bottom in League One, and Way left at the same time.
He went to be appointed as manager of National League South side Bath City 12 months later, and stayed there until March when he lost his job after a run of poor results.
Way started his new role at Torquay only a couple of days later, though, and now he is set for an extended spell with the Gulls.
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