The Toffees will be relieved to have secured Barkley's future after reports the promising youngster was attracting the interest of Europe's top clubs.
"It means everything. It's a dream playing for Everton. Today signing a new contract is a great thing for me. As soon as I got told about it I just knew I would sign a contract, said the 20 year old.
"I'm settled in at Everton, we have to push on now from here."
"Since the gaffer arrived he has helped me and all the young players a lot. He's great. He develops our all round game, talks to us every day," added the England international.
Boss Roberto Martinez was delighted with the deal. "It is a four-year deal which reflects his new role and his development. This is as big news as we could get.
"He is still a young man but as it stands he is a massive part of our squad. Ross Barkley is the type of player everyone wants to pay to see."