It is believed his new contract is worth around £3million a year.
Moyes told the club’s website: “The big thing for me is that I am at Everton, as far as I am concerned, for another five years and the job is to make us better than we have been.
“I am pleased for everybody. I’m pleased for myself and my family who were desperate to get it signed and secured and it is always what I wanted to do.
“I have enjoyed my time here so far and I am looking forward to the next part as well.
“There is definitely a consistency at the club – players know what they are doing and staff know what they are doing.
“It’s a great football club and I am privileged to be the manager.”
He added: “Since I took over six years ago, I think there has been an improvement and the job is that I want a similar improvement over the next five years or so.
“I want the ambition to be greater, I want the expectancy to be higher and I want Everton overall to be higher on the field and off the field.
“I am determined to try and take it forward.”
Chairman Bill Kenwright said: “There have always been two people – myself and David – confident that the long term future of the manager would eventually be secured.”