"This is really terrific news for everyone connected with the club," manager David Moyes told evertonfc.com.
Chairman Bill Kenwright was similarly delighted after concluding negotiations with Lescott.
He said: "We have worked really hard over the past 12 months or so to secure the futures of our brightest and most gifted young players - men like Joleon, Tim Cahill, Mikel Arteta, Andy Johnson, Leon Osman and Tony Hibbert.
"Joleon is absolutely delighted to have agreed this new deal. I am delighted for him and also for our supporters who have really taken him to their hearts since his arrival from Wolves."