Louis Saha's current deal was due to expire this summer and he was attracting interest from a number of clubs.
However, he has opted to extend his stay with the Toffees having joined from Manchester United in 2008.
Saha: "It was an easy decision. You always think carefully but it didn't take me long to know I wanted to stay because I have enjoyed my time here and I want to be part of the future of Everton.
"It is a pleasure and an honour to stay here.
"At certain stages in your career you look at where you are going and by staying at Everton I feel I am going up in my career."
James Milner signed a four-year deal when he became Villa's record signing in a £12 million switch from Newcastle 18 months ago and is under contract until June 2012.
But Villa will act during the close season to attempt to tie down the 24-year-old on a longer term basis.
Milner has been in outstanding form and forced his way into contention to be part of the England squad for the World Cup in South Africa this summer.
Villa boss Martin O'Neill: "I would say we wouldn't be looking at people until the summer but that doesn't mean that James Milner hasn't been fantastic for this football club.
"I've already spoken to him and we are leaving everything. We're not going to sit down now.
"The season is far too busy and the summer is the perfect time to talk and I think all parties agree on that too."
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