Barkley, who has had loan spells at Sheffield Wednesday and Leeds, has won nine England caps so far and was named on the shortlist for last season's PFA Young Player of the Year Award.

"It means everything to me," said Barkley. "It's a dream playing for Everton. As soon as I got told about it I wanted to sign.

"I've played for Everton most of my life. This is a big thing for me."

Manager Roberto Martinez believes tying down the England midfielder's long-term future is a significant achievement.

"Ross has signed a new contract to reflect his new role and development," said the Everton boss.

"When you talk about assembling squads and getting ready for the new seasons for us it is as big news as you can get.

"Ross is still a young man and there is a long way to go in his development but as it stands he is a massive part of our squad.

"It is a big moment as every Evertonian will tell you Ross Barkley is the sort of player everyone would love to pay to watch him play.

"He brings back memories of the big legends we've had at the club. But saying that he is a young man and his best years are yet to come."