The England international has enjoyed a maiden Barclays Premier League campaign, producing a number of impressive displays after being handed the number one jersey last summer.
Butland has arguably been the Potters' most consistent performer this season and also earned him his competitive Three Lions debut against Lithuania in the EURO 2016 qualifiers in October.
It has been a whirlwind 12 months for the 23-year-old who admits it was an easy decision to put pen-to-paper and commit his future at the Britannia Stadium.
"It's been incredible. I've waited a long time for my chance, worked incredibly hard for it and I am really enjoying my time here so I'm delighted to extend it even further," the City shot-stopper exclusively told stokecityfc.com.
"It was an easy decision to make, especially off the back of this season with the Club moving forward and stepping in the right direction.
"I've felt comfortable here and I felt ready to come in and make my mark in the Premier League, which has gone extremely well.
"I joined when I was 19 and I probably bit off more than I could chew, wanting to be involved and play a big part straightaway.
"The Club dealt with it brilliantly by allowing me to play games out on loan, while still continuing to train at the Club and eventually the chance came along at the perfect time that suited both parties.
"I will always back myself, I'm extremely pleased with how this season has gone and the position we're in as a team so it really was a no brainer for me. I am thrilled to commit my future to Stoke City."