The 21 year old was limited in appearances after he joined the Blue Square Premier side last season but has played the last five games for the Tynesiders, impressing manager Ian Bogie in the process.
"Gillies has grasped his chance with both hands, he has done well and must now perform consistently to stay in the side. He has had to be patient and is one of a number of talented youngster at the club."
Gillies moved to Gateshead from Whitley Bay in the summer of 2010, initially signing a month to month contract.
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