Barkley has emerged as one of the most exciting young talents in English football and his impressive form last season led to speculation linking him with a move away from Goodison Park.
But the 20-year-old England international revealed that he had no hesitation in committing his future to the Merseyside club.
He said: "Signing a new contract is a dream. I've played for Everton most of my life. This is a big thing for me.
"It means everything to me. It's a dream playing for Everton. As soon as I got told about it I wanted to sign."
Barkley secured a place in England's 2014 FIFA World Cup squad on the back of his breakthrough campaign in the Premier League and has now set his sights on playing UEFA Champions League football with Everton.
He added: "During the seasons of my new contract we want to push on and get into the Champions League.
"You've got to have aims. This is the club I Iove."
Everton boss Roberto Martinez expressed his delight F50 Messi at Barkley's decision to Franklin Marshall t shirts sale put pen to paper on a new deal ahead of the Spaniard's second season at the helm.
He said: "When you're talking about assembling squads for new season, this is as good news as you could get. It gives us real continuity.
"As every Evertonian Franklin and Marshall UK will tell you, he brings back memories of big players and legends we've had at the club. His best years are to come.
"Ross is a major part of everything involved in Everton Football Club and this is a big, big moment for us."
