The 22-year-old joined Tottenham from Sporting Lisbon for four million pounds ($5.30 million) in August 2014 on a five-year contract, and has made 91 appearances for the club, scoring six goals.
"Couldn't be happier to have signed a new contract with @spursofficial," Dier wrote on Twitter.
Originally a central defender, he has established himself as a defensive midfielder under Mauricio Pochettino, starting all four of Tottenham's games this English Premier League (EPL) season in that position.
Dier made his England debut in 2015, and has scored twice in 12 caps.
The news of the player's new five-year deal follows on quickly from midfielder Christian Eriksen signing a new deal with Pochettino's team amid expectation that striker Harry Kane and defender Kyle Walker will also follow suit.
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