The highly rated Republic of Ireland right-back enjoyed a superb individual campaign in 2013/14, scooping Everton's player of the year award and earning a place in the PFA team of the season.
Coleman played 41 times last term, showcasing his considerable attacking talents with an impressive seven goals.
The 25-year-old has made 143 appearances for Everton since joining from League of Ireland outfit Sligo Rovers in January 2009 and his decision to put pen to paper on fresh terms will be welcomed by supporters of the Merseyside club following speculation linking him to Manchester United, and more recently, Arsenal.
"With how much I love playing at Everton, I was delighted to get the chance to sign another contract," Coleman told the club’s 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 the example of manager Roberto Martinez after the former Wigan Athletic boss agreed a new five-year deal earlier this month, having secured a fifth-place finish in his maiden season in charge.
Goalkeeper Tim Howard, left-back Leighton Baines and defender Sylvain Distin have all agreed new contracts at Goodison since the turn of the year.
