ESSENDON has re-signed one of its most exciting players, with star forward Joe Daniher inking a new three-year contract extension.

The new deal will see Daniher, equal-third in the Coleman Medal with 35 goals, tied to the Bombers until at least the end of the 2020 season.

It has been reported the deal is worth close to $2million across the three years.

"I'm really excited to commit to the club for a further three years," Daniher told the club's website.

"I'm confident and proud of the direction we're going as a football club, we have a great group of players who are working extremely hard to take the club where it needs to be.

"I'm really enjoying my football at Essendon, and that is largely due to the relationships that I have formed over the early part of my career and the positive direction we're heading in as a group. 

"I'm really encouraged by the progress we’re making, but very understanding we have a long way to go to become the team we want to become."

Daniher is enjoying a breakout season for the Bombers in 2017, averaging career-highs in marks and disposals and has often ignited a dynamic Bomber attack.

The 23-year-old was awarded the Anzac Day Medal and Tom Wills Award for his best on ground performances against Collingwood and Geelong in rounds five and eight respectively.

Bombers coach John Worsfold said Daniher's signing was an important move for the club. 

"We are really pleased Joe has recommitted for the next three seasons, he's invested in our vision and as a leader of our club will continue to grow and shape the elite culture we are building," Worsfold said.

"Joe is an extremely talented footballer, he has a wonderful work ethic, shows genuine leadership and is a highly respected member of our playing group.

"Joe is part of a really talented group of young players on our list who are an important part of our future, and our members and supporters should be really optimistic about where their club is heading."

Daniher, pick No.10 in the 2012 NAB AFL Draft, as a father-son selection, has played 83 matches and booted 143 goals.

The young gun finished second in the club's best and fairest award in 2016, behind fellow star Zach Merrett.