The British firm will take over as the club's kit supplier from American brand Nike this summer.
The deal restores an old partnership with the Merseysiders having sported the Umbro brand for many previous seasons, most recently from 2004-09.
Toffees chief executive Robert Elstone said: "The club is delighted to be entering into this new and exciting partnership and looks forward to working alongside the Umbro team over the next five years.
"Umbro has an unrivalled football heritage and is committed to maintaining its reputation for design excellence and innovation.
"Of course, we're starting from a good place. Based on many years of working together, Umbro enjoys a great affinity with Evertonians."
The arrangement, which officially begins on June 1, will also see Umbro take over as sponsors of some of the club's grassroots initiatives.
Everton have given no details of the financial aspects of the agreement but it is understood to be a club record for a deal of its type.