"We’ve always held Jack in the very highest regard but he has exceeded even our expectations since (manager) Mark (Hughes)selected him as our first choice goalkeeper," chief executive Tony Scholes said.
"As a Club we feel it’s important that we tie down our talented young players on lengthy contracts and Jack’s new deal is a fitting reward for his progress this season."
Butland, who was already committed to Stoke until 2019, has cemented his place in the starting lineup following the departure of Asmir Begovic to Chelsea during the close season.
Stoke are ninth in the Premier League, three points clear of Chelsea.
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Butland has kept 10 clean sheets in the campaign and was included in England manager Roy Hodgson's squad for pre-Euro 2016 friendlies against world champions Germany and Netherlands this month.
(Reporting by Alan Baldwin, editing by Ed Osmond)
