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Holloway has helped his side get off to an unbeaten start to the new campaign after three wins and a draw in their first four games.
"Gary is a massive player for us. I have always said he is too good for this level but there are reasons why he is here," a delighted manager Steve King told The Argus.
"He could get a Blue Square Premier club tomorrow but it suits him to play part-time with us. He has been exceptional for us and got himself in the England set-up, which is very rare for a club in Sussex.
"At 27 he has plenty of years ahead of him and to have him for the next two or three is fantastic. It also shows he believes in what we are trying to do here."