Farrell broke into the Saracens first team last season and, playing fly-half, he guided the club to their first league title with victory over Leicester in the Premiership final.
The 20-year-old made an assured England debut at inside centre in the opening round of the RBS 6 Nations against Scotland.
Farrell's perfect kicking display helped England to a 19-15 victory over Italy and he is set to be named in the side to play Wales this weekend, when interim coach Stuart Lancaster confirms the line-up tomorrow morning.
Saracens director of rugby Mark McCall said: "Owen obviously has a wonderfully exciting future in the game, at club and international level, and we are delighted he has pledged his future to Saracens."
Farrell is one of 18 Saracens players to have signed contract extensions, with the club planning to announce the rest over the next three days.
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
$29.99
The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.
