The young Bomber was the club's second pick at the 2011 NAB AFL Draft, and AFL.com.au understands he is close to extending his stay at Essendon until at least the end of 2015.
Merrett made his AFL debut in the last game of 2012 but has established himself as a player of the future in the early part of this season.
His speed, class and smarts close to goal have added something to Essendon's forward line in his six senior appearances this year.
Essendon grabbed Merrett with pick 31 in the draft two years ago after gaining the selection by trading Josh Jenkins and pick 41 to Adelaide.
Merrett's likely signature continues the Bombers' run in retaining their emerging talent, having recently signed young stars Dyson Heppell and Jake Carlisle to two-year contract extensions.
Follow AFL website reporter Callum Twomey on Twitter @AFL_CalTwomey.
