The skipper signed the deal on Saturday morning ahead of the loss to QPR and will now be playing for the club until the age of 36.
His old contract had been set to expire at the end of the season.
Speaking to evertontv, Neville said: "I feel really proud and this club has never let me down. It's shown faith in me again and for the next two years I'm going to give my all for this football club.
"That's what I've done for the last six years and that's what I'll continue to do."
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