Media outlets on Monday reported that the deal was done, although Collingwood staff are on their Christmas break.
The 2011 Brownlow medallist, one of the game's best midfielders, already has a deal through to the end of the 2014 season.
Swan turns 30 next February and a new deal would most likely take him through to playing retirement.
He said in a 2012 interview that he would most likely retire at the end of the 2014 season, but Swan has since said in April this year that he would seek a new contract.
He played 23 games this season for a career total of 219 and finished third in the Brownlow, only two votes behind winner Gary Ablett.
While Swan's greatness as a player is undeniable, he has been the subject of regular off-field controversy throughout his career.
His premiership teammates Dale Thomas and Heath Shaw left Collingwood at the end of this season, but it was clear that Swan would stay.
He played 23 games this season for a career total of 219 and finished third in the Brownlow, only two votes behind winner Gary Ablett.
While Swan's greatness as a player is undeniable, he has been the subject of regular off-field controversy throughout his career.
His premiership teammates Dale Thomas and Heath Shaw left Collingwood at the end of this season, but it was clear that Swan would stay.
