The England international is second choice behind Asmir Begovic, and had a spell on loan at Championship outfit Derby County earlier in the season.
As he vies for the number one jersey with Begovic, Butland was thrilled to have signed a new deal at the club.
"I'm delighted to have extended my contract," he told Stoke's official website.
"I'm really enjoying myself at the club and feel like I'm improving and getting better every day.
"It's great to have the security of an extended contract and I'm looking forward to plenty of success and plenty of game time as well.
"I believe I can be first choice goalkeeper for the club. I can only focus on what I'm doing on a day-to-day basis and when I get opportunities to play really take full advantage of them.
"I'm only young but it's important for me to keep developing and hopefully this will be the club that can help me do that.
"I'm really pleased with the way things have gone for me since I joined Stoke from Birmingham. Obviously more game time would have been nice but that's what I'm working towards."
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