The deal was reported by News Limited on Monday and although the club would not confirm, there is little doubt the 24-year-old has recommitted.
His signature rounds out a turbulent seven days at the Lions that started with the departure of coach Michael Voss last Tuesday after being told his contract would not be extended in 2014.
After finishing fifth and third in the last two Lions best and fairest counts, Hanley is a strong contender to win the award this year.
The dashing half-back/wingman has had a scintillating 2013 despite ever-increasing attention from opposition taggers.
He is averaging 22 disposals per match and has kicked 16 goals in his 18 games.
Along with Daniel Rich, Hanley is one of few genuine match-winners at the Lions.
His signature, along with that of Rich and Matthew Leuenberger earlier this year, ties up the core of the Lions' future stars.
Now they are sweating on the futures of co-captain Jonathan Brown who is recovering from foot surgery, and Simon Black, who again has groin troubles after Saturday night's win over GWS.
Both are out of contract at season's end and deliberating on their future.
Then, of course, there's the small matter of signing a new coach.
Twitter: AFL_mikewhiting
