Club Chairman Brian Adams said, "Since arriving at the club in December, Colin has really impressed the board with his training sessions, fitness work, preparations, eye for detail and his interest in our Academy and Under 20s team.
"The board were, therefore, unanimous in their decision to make Colin's position permanent.
"I am delighted that Colin and his brother Darren have agreed to stay on and I am hopeful they can take us forward.
"We're an ambitious club and Colin is an ambitious manager, so it's a perfect fit."
Colin Nixon said, "It is a great honour for me to manage Ards Football Club.
"I have thoroughly enjoyed the last few months and I'm already looking forward to the new season. I'd like thank the board for putting their faith in me and I'd like to thank the fans for their fantastic support."