The 20-year-old enjoyed an impressive season under Roberto Martinez last time around to earn a place in the Three Lions squad which went to the World Cup this summer.
And Barkley has been rewarded for his progress over the last 12 months with a new deal which sees him contracted until the summer of 2018.
Barkley had an impressive season with Everton last time around
Liverpool-born Barkley is a product of Everton’s youth academy and made his debut for the Toffees in 2011.
He has also been a regular for England, winning caps at U16, U17, U19, U20 and Under-21 level over the last five years before his call-up to Roy Hodgson's senior squad last season.
The summer of 2012 saw him catch the eye at the U20 World Cup alongside Everton team-mate John Stones, who also progressed into Roy Hodgson’s senior squad as a result of his development under Martinez last season.
"It's as big a news as we could get," said Martinez.
"He's a massive part of our squad and it's a big moment for him to sign a new contract to reflect his role in the team and for us, it's about assembling the squad and getting ready for the new season.
"Ross is still a young man and has a long way to go in his development, but as it stands, he's a massive part of our squad and we're happy to tell our fans that Ross has signed a new contract to reflect that.
“It's a dream playing for Everton.”
Ross BArkley
"It's a big, big moment because as every Evertonian will tell you, Ross Barkley is a player who people love to pay for a ticket to go and watch play football as he brings back the memories of the big legends and players that we have had at the football club and his best years are still to come.
"It gives us piece of mind in avoiding any speculation, as you always get the typical question about what's going to happen with players when they perform well.
"The reality is that we are desperately looking forward to the new season and Ross is a major part of everything that is happening at Everton Football Club."
Barkley added: "It means everything to me, it's a dream playing for Everton and to sign a new contract is a great thing for me.
"I didn't really need any convincing about it, once I got told about it, I just wanted to sign.
"I'm settled at Everton, which is the club that I love and I just want to push on and do well from here on.
"It was a great season last season and we did well to get into Europe, which was our ambition.
"Now we want to push on and get into the Champions League as we have ambitions and goals for next season."
