The 19-year-old, who was taken by the Lions with pick No.23 overall in the 2012 AFL Draft, has played 21 games for the club, including 16 in 2014.
His signature continues a recent signing spree for the club that included first-year player Nick Robertson and utility Rohan Bewick last week, along with fellow 2012 draftees Sam Mayes and Michael Close.
Lion cubs refuse to go home
Recruited from East Fremantle, Paparone made his debut for the Lions in round 4 last season, kicking three goals against North Melbourne.
"Marco is an emerging player with elite endurance," Lions general manager of football operations Dean Warren said.
"He is really beginning to establish himself in our side and we are excited about his future with the club."
Recruited from East Fremantle, Paparone made his debut for the Lions in round 4 last season, kicking three goals against North Melbourne.
"Marco is an emerging player with elite endurance," Lions general manager of football operations Dean Warren said.
"He is really beginning to establish himself in our side and we are excited about his future with the club."
