VERSATILE Melbourne tall Cameron Pedersen has signed a one-year contract extension with the club.

As flagged by football manager Josh Mahoney on Tuesday, Pedersen will be at the Demons in 2017.

Mahoney told the club's website on Thursday, the 29-year-old will provide a valuable role in assisting the young Demons.

"Cam has proven to be a durable player, who has been able to perform at the level when required," he told melbournefc.com.au.

"As our young forwards continue to develop, Cam can play a role in assisting this next year.

"He deserves his new one-year extension."

Pedersen, who has played 61 career games, spent two years at North Melbourne before crossing over to the Demons in 2013.