Essendon and Joe Daniher are closing in on a contract extension that will see him recommit to the club for a further three seasons.

Fairfax Media understands that the Bombers and Daniher's management have all but agreed to terms on a deal worth well over $2 million.

An announcement is expected within the next two weeks.

Daniher, who has kicked 29 goals in the first 10 games of the season, on the back of 43 in 2016, was seen as one of the hottest out-of-contract players in the game, including the likes of the Dockers' Nat Fyfe and Tiger Dustin Martin.