The new deal will keep the club's Player of the Season at Goodison Park until the summer of 2019.
Coleman enjoyed a fine season with Roberto Martinez’s side and was named in the PFA Team of the Year, while he also captained Republic of Ireland for the first time during their friendly against Germany.
"With how much I love playing at Everton, I was delighted to get the chance to sign another contract," Coleman told Everton's official website.
"I've been at Everton five years now and I love everything around the place. I love working with all the players, the staff, the coaching staff - everything. It was a very happy decision to make.
"With the manager and some of the players we have, we're going to the right places."
Coleman follows in the footsteps of his manager who also signed a new five-year contract earlier this month.
Tim Howard, Leighton Baines and Sylvain Distin have all agreed contract extensions since the turn of the year.