Although talks on a possible three-year extension started some time ago, Hibberd has switched management teams in between, which has slightly delayed the process.
The 24-year-old was originally a client of West Australian based SMA management group, but is now being managed by Paul Connors. Discussions on a three-year term, which would tie Hibberd to the club to the end of 2017, are ongoing.
Hibberd, who enjoyed a breakout 2013 season, playing every game and starring for the Bombers across half-back, recently told AFL.com.au he was keen to stay at the Bombers.
"I'm personally really excited about our list and how well we can go in the future. I think the next few years are going to be pretty promising and I definitely want to stay at a club like Essendon," he said in April.
"My best mates are there at the moment and I'm having fun playing footy there, so there's no reason why I'd want to go anywhere else."
The Bombers have also opened talks with midfielders Ben Howlett and Heath Hocking, with Hocking set to be a restricted free agent at the end of 2014.
The club is also understood to be working through a new deal for youngster Jason Ashby, likely to be a two-year extension, while Martin Gleeson is yet to sign a contract beyond 2014 despite his encouraging signs this season.
Jason Winderlich's contract ends this year as well, however the one-year term he signed last year is believed to contain a trigger clause for a second year.
Despite the turmoil of last year, the Bombers signed up a bulk of their players beyond this season during 2013, including captain Jobe Watson, Jake Carlisle, Dyson Heppell, Tom Bellchambers and Cale Hooker.
Earlier this year midfielder David Zaharakis also agreed to a three-year deal.
Twitter: @AFL_CalTwomey
