The 19-year-old joined Everton from Arsenal three years ago and impressed for the reserve team’s player of the season last season.
He told the club’s official website: “I’m absolutely delighted.
“Two years is a good amount of time to show what I can do and hopefully I can give the manager food for thought.
“It was great to be named reserve player of the year last season and I’ve had time to go away and reflect with my family on the good bits and bad bits.
“I know what I need to do and I’m looking forward to it.”