Coleman enjoyed a fine campaign for the Toffees last term, culminating in the right-back winning a place in the Premier League's Team of the Season.
Consequently, the Republic of Ireland international had attracted reported interest from both Arsenal and Manchester United, but the 25-year-old has drawn a line under his future on Merseyside by committing his future to the club until 2019.
"With how much I love playing at Everton, I was delighted to get the chance to sign another contract," he told the club's official 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."
Manager Roberto Martinez also committed his future to Everton this summer by a further five years, having led the club to Europa League qualification and a record points total in the Premier League era.