The new deal sees Ruddy extend his commitment to the Norfolk club until 2017, with the Canaries having the option of extending the contract for a further year.
"I'm more than happy to commit my long-term future to the club," Ruddy said on canaries.co.uk.
"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.
"Thankfully I think it's paid off for both sides and now I'm just looking to keep up my form."
Ruddy, 27, joined Norwich from Everton in the summer of 2010 and has gone on to make 107 appearances in all competitions for the club.
His sole appearance for his country so far came in August 2012, when he featured in a friendly against Italy.
City boss Chris Hughton added: "We were in a position where there was some interest in him in the summer, and I think that reiterated for us what we felt about John.
"We're really delighted that he has signed a new contract, and it's one that's thoroughly deserved not only for what he's done for the club but of course with his part on the international scene with England too."
Source: PA
Source: PA