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."
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