Digne joined Everton from Barcelona in 2018 and in 97 appearances has directly contributed to 24 goals, scoring five and assisting 19.
The France left back said Everton’s ambition to pursue European qualification spots under manager Carlo Ancelotti made him commit his long-term future to the Merseyside team.
“We have a big project with the club and can reach something very good at the end of this season and for the next few years,” Digne, 27, told evertontv.
“I want to play in Europe and Everton is the best place to do that.”
Digne has contributed six assists in the league this season, despite missing seven matches following an ankle ligament injury sustained in November.