ESSENDON has warded off St Kilda's interest in Jayden Laverde, who is set to sign a new two-year deal with the Bombers.

The club has been in protracted contract talks over a new deal for Laverde for months, but AFL.com.au understands rivals were informed this week that the 20-year-old will be staying at Essendon.

The contract is believed to tie him to the Bombers until the end of 2018.

St Kilda, who rated Laverde highly in his draft year in 2014, had shown strong interest in the exciting and quick half-forward.

It is an important signing for the Bombers, who couldn't have afforded to lose one of their brightest young talents as they look to rebound from their wooden spoon season.

They also announced on Thursday that defender Martin Gleeson had signed a new two-year deal keeping him at Essendon until the end of 2018.

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Laverde has played 18 games for the club, including the last eight of this season after returning to the senior team following shoulder surgery.

He joined the club with pick No.20 in the 2014 NAB AFL Draft after a strong season at TAC Cup level for the Western Jets.

His speed, power and size make him a promising prospect, and in time he is expected to use those traits more throughout the midfield after starting his career closer to goal.

He is one of four top-20 picks the club has had in the past two years alongside Kyle Langford, Darcy Parish and Aaron Francis.

The Bombers hold another two selections in the first 20 this year, including the No.1 choice after finishing on the bottom of the ladder for the first time since 1933.

The Saints remain likely to be busy in this year's trade period, having been strongly linked to GWS pair Jack Steele and Caleb Marchbank.

Marchbank has already confirmed he is seeking a trade back to Victoria, while Steele is out of contract with his future up in the air as rivals circle.