The French centre-half's former deal was set to expire at the end of the season but he has now put pen to paper on a new contract on Merseyside, the club confirmed on their official website.
Distin has spent the last three years at Everton, notching up over 100 appearances, including 22 in all competitions this season.
The 35-year-old, who arrived from Portsmouth in 2009, has been a regular feature at the heart of David Moyes' defence as they push for a top-four Premier League finish.
He becomes the latest player to commit to the club after fellow defenders Phil Jagielka and Seamus Coleman recently extended their stays.
Distin said via his official Twitter account: "Contract sorted...don't have time to enjoy as I need to go back to hard work ha ha ha."
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