Coleman’s previous deal would have expired in the summer of 2022 but his new contract will see him remain at Goodison Park until 2023.
The 32-year-old Republic of Ireland international joined Everton from Sligo Rovers in January 2009 and has made 350 appearances across all competitions for the club.
Coleman made 25 appearances in the Premier League last season as Everton finished in a disappointing 10th position under Carlo Ancelotti but is determined to help the Toffees end their long wait for a trophy under new manager Rafael Benitez.
"It's a massive honour to extend my time here," Coleman told evertontv. It was about getting my head down and to keep working hard like I've always done, and the club decided to reward me with that. It's something I'm very happy with.
"Hopefully now I can keep going as long as possible, give my experience to the younger lads, help and support them in any way I can, and contribute on the pitch as much as possible."
"I keep saying it and make no apologies for it, winning is what we're here to do," Coleman added. "The whole football club's vision is to break that barrier (to win silverware again). My job in the process is to be sure we are doing all the right things behind the scenes, on the training pitch, the best way possible.
"It's about being the best we can every day, making sure we demand more off each other. It's something that I need to do, the senior players need to do and the new players need to do.
"It's very easy to sit here and say it but we all need to show the right attitude at the club and hopefully that can help us going forward."
