The 22-year-old Irishman, signed from Sligo Rovers two years ago, agreed a new contract only last May but has already had that torn up and replaced after an outstanding start to the season.
Coleman has finalised a new four-and-a-half-year deal which commits him to the Goodison Park club until the end of the 2014-15 campaign.
He joins forward Victor Anichebe in re-signing after the Nigeria forward also agreed a new contract for the same length.
Coleman spent the second half of last term on loan at Blackpool but has since returned at Merseyside and established himself on the Toffees' right flank, scoring five goals this term.
Coleman told evertontv: "I'm over the moon to sign the contract. My aim was to keep impressing after every contract and this new one proves that I've been doing well. I just want to keep going now."
Source: PA
Source: PA