The 17-year-old, who has yet to break into the first team since joining from Bradford in October, has signed a deal which commits him to Goodison Park until the end of the 2014/15 season.
Green has represented England at U16 and U17 levels, and scored an added-time winner against Spain on his international debut last year.
"As soon as I signed for Everton from Bradford I was hoping I'd get to a stage where I earned a pro contract," Green said. "I've done that, so it feels really good to be honest.
"It's been much harder at Everton than I thought, a much tougher challenge. I'm playing with better players now and it's been really enjoyable.
"I just hope to push on now and hopefully earn another contract again in the future. I can't wait to get going."
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