TOM SPARROW has rejected a lucrative long-term offer from Port Adelaide to sign a five-year deal to remain at Melbourne. 

Sparrow, an unrestricted free agent, had been in the Power's sights all season and took his time to make his decision, while producing a career-best season under new Demons coach Steven King. 

The 26-year-old has averaged 22.5 disposals and 3.7 clearances as Melbourne remains in the top-four mix ahead of the final round of the home and away season. 

He had 16 touches and a goal in the Demons' 76-point win over the Power at Adelaide Oval on Saturday night. 

Demons list manager Tim Lamb said the club was thrilled to retain the 2021 premiership player. 

"Tom has grown into one of the competitions most impactful midfielders, while also establishing himself as a valued leader within the club," Lamb said. 

"We look forward to seeing what Tom will continue to bring to the program over the next five years."

Power coach Josh Carr all but conceded on Friday last week that his club's chase of Sparrow had failed. 

"Good on him. He's had a great year and they've had a great year and they're obviously a good football club that looks like they're on the up," Port coach Josh Carr said when asked about reports that Sparrow was about to re-sign with the Demons.

"So if that's the case, then well done."