Calvert-Lewin told evertontv: "This is a very proud day. It has been enjoyable for me since the start at Everton and I am enjoying every day coming into training and every minute on the football pitch.

"The turnaround we have had since December is fantastic and the belief in ourselves we are back up there and can compete with the best is well and truly there.

"And with a man like Carlo (Ancelotti, who replaced Marco Silva as Everton boss in December) leading the ship it makes it easier for us to believe in the process.

"We want to be in Europe and competing in the top competitions. It would mean that bit more to win trophies here because of the journey I have been on with Everton and Evertonians. It feels personal and that is how I like it."

He added: "Personally, I want to get to that next level.

"I like to think I have shown I am ready to live up to the expectations of being Everton's number nine.

"But I am well aware of how much I need to improve and how much better I can do. I love where I am and the position I am in and I love playing for Everton Football Club."

The deal sees Calvert-Lewin follow in the footsteps of defender Mason Holgate, who signed a new five-year deal this week.

Ancelotti said of the pair earlier on Friday: "The fact that they are English I think is important for the club, for the structure, because they know better the atmosphere here. But above all they are players with a lot of quality."

The manager also spoke about Leighton Baines and his hope the full-back, 35, will stay at Goodison Park for another season.

"There is a possibility," Ancelotti said. "We are going to talk with him what he's going to do. He's really important for us."

After last weekend's draw with Manchester United, Everton face another of their rivals for European football this weekend when they travel to face Chelsea. Ancelotti spent two seasons at Stamford Bridge from 2009 to 2011, winning the Premier League and FA Cup.

He thinks it will be "an emotional moment" for him and is looking forward to seeing Blues boss Frank Lampard, a key player for him during his time in charge at Stamford Bridge.

Ancelotti is also relieved to be able to stand on the touchline after being sent off against United. The Italian was dismissed for his protests after Everton had what would have been a late winner ruled out by VAR and was fined £8,000.

"I don't want to look back at that situation," said Ancelotti. "I have to pay a fine, the fine is not cheap, but it doesn't matter. For me it's important to stay at Stamford Bridge, I'm happy to be there and I move forward."