The 27-year-old France international joined the Toffees from Barcelona in the summer of 2018 and has since made the left back position his own.
Digne has made 16 appearances for Everton in the Premier League this season and has provided six assists.
"The fans made me feel at home from the beginning, they showed me big love and created a song for me," Digne told evertontv.
"It is something I really appreciate and it is very important for me to keep the stability.
"We have a big project with the club and can reach something very good at the end of this season and for the next few years. I want to play in Europe and Everton is the best place to do that.
"I have seen the progress every year since joining the club, we are building a strong team. When you sign for Everton, it is like an amazing wedding.
"You just have to do your best every day to show Evertonians the love you have for them. That is what I do.
"I want to show them what they give me and it is just amazing. It was clear in my mind that I want to continue with Everton."
Digne has won 35 caps for the France national team and has also represented the likes of Lille, Paris Saint Germain and AS Roma.
