He will have a chance to resurrect his career in his hometown, having arrived at the Demons from Claremont five years ago.
Morton was selection No.4 in the 2007 AFL National Draft and made his debut in round 1, 2008.
He earned four Brownlow votes in his first season and was considered a promising midfielder after playing 40 games in his first two years at the club.
However he has struggled since with both injury and form, playing just 33 games in the past three seasons.
He showed some early glimpses of form in 2012 and looked to be finding a spot as a wingman. But his form tapered off and he was dropped following the Collingwood clash in round 11. He was dragged from the ground in dramatic fashion that day after making a decision-making error at a crucial part of the game.
He played one more game for the season - tagging the Gold Coast star Gary Ablett in round 19 as a late inclusion - but injured his shoulder.
He required a shoulder reconstruction but he has recovered well.
At 22, he will join a strong midfield at the Eagles and will have the chance to play to his strengths in running and endurance.
His brother Mitch played in a premiership with the Sydney Swans this season after joining the club from Richmond during last year's trade period.
