Richards, the younger brother of Swans premiership full-back Ted, has played just one AFL game in his two seasons on the Swans' rookie list, coming on briefly as the Swans' substitute in round 14 against Carlton last year.
AFL.com.au understands Richards, 21, has agreed to terms to remain at the Swans to the end of 2016 and will be elevated to the senior list ahead of next season.
The Swans have been happy with Richards' continued development in the NEAFL this year. The 196cm defender has played 14 games with the Swans' reserves team and continues to get stronger in one-on-one contests.
The Swans have high hopes that Richards can fill one of their key defensive posts in future seasons.
