The Canaries confirmed they also had a further option to keep the highly-rated 25-year-old at Carrow Road until 2017.
Ruddy, who was named in Roy Hodgson's England squad for Euro 2012 only for a broken finger to rule him out of the tournament, told the club's official website: "I'm delighted. I have never wanted to leave Norwich since I've been here. I've had a great two years so far, and I can't wait to be a part of it for the next four years."
The former Everton stopper helped Norwich to promotion out of the npower Championship following his arrival in July 2010, and believes it is an exciting time at the Norfolk club, who are now under the guidance of new boss Chris Hughton after Paul Lambert left for Aston Villa.
He added: "I love the atmosphere around the place and it's a fantastic club to play for. We have a new manager coming in too, who I am looking forward to working with.
"The main thing for me is that my family are really settled here as well. My lad starts school in September, so it's nice to get a bit of security for them too.
Hughton has already moved to tie up versatile Scotland defender Russell Martin on a new deal, while midfielder Andrew Surman also this week penned fresh terms.
The former Newcastle and Birmingham boss was due back at Carrow Road this week after a holiday in Florida, and is now set to make sorting out the future of captain Grant Holt - who handed in a transfer request at the end of the season - his top priority.
Hughton believes Ruddy can continue to develop into one of England's best with the Canaries.
"John has been a key part of the club since he has arrived," said Hughton. "He has made some fantastic progress over the past couple of years here and is an integral part of the club's future. His great work over the past couple of years has seen him work his way into the England squad with his call-up this summer and hopefully he can continue his great progress now for years to come."
Source: PA
Source: PA