The 32-year-old has extended his stay at Goodison Park until 2015 but accepts the club is undergoing a summer of change following the departure of David Moyes to Manchester United.
And although the identity of the Scot's successor has yet to be identified Osman believes everyone will have to raise their games.
"It is a relief to have penned the contract so I can go and enjoy the summer and then work on achieving something next season," he said.
"I am delighted to have secured another year at the club.
"I have been here since I left school, I am a player and a fan, I love coming to work every day and I am delighted that's going to continue.
"It's time to take the family on holiday now, enjoy the break and recharge the batteries for next season.
"We are having a summer of change and we're not quite sure what is going to happen with regards to the manager but I am still delighted to have secured my future here at the club.
"It is going to be a new challenge and someone new to impress, which should raise the bar for everyone.
"Everyone will have to step up their form."