Ruddy joined the Canaries in 2010 and played a key role in helping the side to win promotion to the Premier League in 2011.
The 27-year-old has impressed England manager Roy Hodgson with his consistency between the sticks, leading to his selection for the European Championships although he had to pull out due to injury.
The former Toffees stopper has made 107 appearances in all competitions for the club and he is eager to continue in the top-flight under Chris Hughton.
Ruddy said: "I'm more than happy to commit my long-term future to the Club.
"I've thoroughly enjoyed my time at Norwich City - everyone has been very supportive. The whole Club, the players and staff I have worked with have been fantastic.
"I've broken into the England squad while at Norwich, and without the opportunity they gave me I wouldn't have been anywhere near it. I was in a bit of a no-man's land before I joined the Club, and they took a gamble on me."