The club known as the Toffees finished fifth and their points tally of 72 represented a club record.
"Everton has today confirmed it has signed a new five-year contract with manager Roberto Martinez," read a statement on the club's website (www.evertonfc.com).
"Martinez, who joined from Wigan Athletic just over a year ago, will remain at the club until at least the end of the 2018-19 season."
The 40-year-old, who won the 2013 FA Cup with unfancied Wigan, transformed Everton into a slick, creative team spearheaded by exciting young attacking players.
Their brilliant season under Martinez was capped with qualification for the Europa League. It will be their first appearance in European competition for five years.
"I am delighted to have been given the opportunity to make a further commitment to Everton," said Martinez. "I loved my first season.
"I could not be more proud of the way Everton performed throughout the entire season and the memories we were able to make together."
Chairman Bill Kenwright described Martinez as one of the best young managers in Europe.
"When we find our man, we empower him," said Kenwright. "We support and provide him with everything at our disposal.
"We commit to our managers and we're immensely pleased Roberto has committed to us. We want the best because only the best will do."
(Reporting by Tom Hayward, editing by Tony Jimenez)
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