Yarran, 19, has been a regular contributor in his second year at the club he joined as the sixth player selected overall at the 2008 NAB AFL Draft.
"It's great for me that the coaches have the faith in me for another two-year deal and I was rapt when I got it," Yarran told carltonfc.com.au.
"Hopefully I can return the favour and play some good footy toward the end of this year and in the two years to come.
"I love Carlton. It's such a good club and I wouldn't want to be anywhere else."
Yarran admitted he felt the burden of being picked so early in the draft at times in his debut year and has used his experience as motivation for the current season.
"As a high draft pick I thought I let the club down. I didn't really play as many games as I should have," he said.
"I just wanted to pay the club back for the faith that they've shown in me by drafting me pretty high.
"I thought to myself that I had let them down last year, but this year I'm having a lot of fun and I'm playing some good footy."
It's that sense of fun in playing the game that Yarran feels has been a key to his success this season and he credits the bond he shares with good mates Jeff Garlett and Eddie Betts for helping him achieve that.
"If you're not having fun you shouldn't be here," he said. "We've been playing some good footy this year. We let ourselves down on the weekend but hopefully we can bounce back this week.
"We need to regroup [as a team] after the weekend's performance [against the Western Bulldogs], really get together and get the confidence and enjoyment back in the game.
"We started off on fire, but it's a long year and we've just got to keep that consistency coming."
